Key Insights:
- ADA bulls suffered over $13 million in losses as the price dropped sharply within 24 hours.
- The price decline was triggered by RSI entering overbought territory, sparking profit-taking.
- Integration with Blockchain.com DeFi Wallet could aid recovery if trading volume improves.
Cardano (ADA), ranked tenth among cryptocurrencies, experienced sharp price volatility that led to a liquidation imbalance impacting bullish traders. Within the last 24 hours, long-position holders suffered over $13 million in losses, as per CoinGlass data. The unexpected downturn disrupted ADA’s recent upward trend toward the $1 level.
ADA touched an intraday high of $0.8601 before slipping to a low of $0.8008. It then managed a modest recovery to $0.8208, which still marked a 3.64% decline from the previous day. The price swing was significant enough to liquidate bullish bets, which accounted for $13.08 million in total losses.
Short Traders Also Record Losses
Although bulls bore the majority of the impact, short traders were not spared. Short-position holders recorded losses totaling $764,060 during the same timeframe. Combined, the liquidation volume reached over $13 million.
A key technical metric, the Relative Strength Index (RSI), reached 78.01, placing ADA in the overbought zone. This triggered a profit-taking trend among traders, contributing to the price reversal. The shift in sentiment led to a significant withdrawal of bullish positions across the trading platforms.
Broader Integration May Support Market Recovery
Despite the volatility, Cardano’s integration into Blockchain.com’s DeFi Wallet could support its market outlook. The addition allows ADA’s exposure to over 37 million users of the exchange, enabling easier trading access without the need for wallet transfers.
The total trading volume for ADA has fallen by 48.02%, now standing at $1.72 billion. This decline highlights reduced participation from both retail and institutional investors, which could limit short-term recovery unless reversed.
Cardano has still managed a 13.35% price increase over the past seven days, showing resilience despite recent losses. The community continues to show interest in its long-term trajectory, provided that volume and ecosystem support recover in the coming sessions.
