Cardano’s price drop to $0.8538 triggered over $118,000 in long liquidations due to sharp volatility.
Despite the 10.14% price decline, ADA’s trading volume rose by 8.82% to $2.57 billion.
ADA’s market cap fell from $33.5 billion to $30.58 billion, pushing it below Tron and Dogecoin again.
Cardano experienced a swift price shift after attempting to hold above the $0.85 resistance level. The asset climbed from a low of $0.8449 but failed to maintain its brief gains. ADA later dropped to $0.8538, marking a 10.14% decline in the past 24 hours. The price movement resulted in increased liquidation, particularly among futures traders who held long positions.
The decline in Cardano's price triggered a significant liquidation event. According to CoinGlass, traders with long positions lost $118,640 within an hour. This was largely attributed to ADA’s unstable behavior around the $0.85 mark. Short positions were also affected, but with only $1,600 in losses, the impact was considerably lower.
Increased Activity Signals Investor Caution
Despite the market downturn, trading volume for ADA rose by 8.82%, reaching $2.57 billion in 24 hours. This uptick in volume suggests that investors remain active. However, the market is showing signs of profit-taking behavior, especially as the price approaches the $1 level. In the last seven days, ADA briefly crossed $1, but bulls failed to sustain the rally due to persistent selling pressure.
The recent decline in Cardano strength dragged the position of this cryptocurrency down in the overall cryptocurrency rankings. ADA has lost grip in the case of briefly being in eight position, after briefly surpassing Tron and Dogecoin. Its stock capitalization had reached 33.5 billion but it has fallen back to 30.58 billion. These are the result of a loss of investors' confidence in the near future.
Outlook Remains Mixed as Traders Await Breakout
Although there are still hopes for a breakout, ADA’s current technical behavior indicates hesitation among traders. The psychological pressure near the $1 mark continues to trigger high volatility. Market participants appear divided, with some exiting positions while others await more stable signals for a potential upward move.
