Peter Smith
Cardano (ADA) bulls got crushed with $13M in losses as the crypto's price pulled back from its march toward $1. The 10th-ranked cryptocurrency saw extreme liquidation imbalances that caught traders off guard.
ADA Price Plunges After Bulls Bet Big on $1 Rally
Cardano traders just learned a harsh lesson about crypto volatility. Long position holders lost a staggering $13.08 million in just 24 hours as ADA's price suddenly reversed course, according to CoinGlass data. These bulls were betting heavily on the asset pushing through to $1, but the market had other plans.
ADA is currently trading at $0.8208, down 3.64% from yesterday. The coin hit an intraday high of $0.8601 before crashing down to $0.8008, wiping out leveraged positions along the way. It's managed to recover slightly, but the damage was already done to those who got caught with their pants down.
Short traders didn't escape unscathed either, losing $764,060 during the same period. Combined, total liquidations reached over $13 million - a brutal reminder of why leverage can be dangerous in crypto.
Technical Indicators Show ADA Price Got Overheated
The pullback wasn't completely out of nowhere. Cardano's Relative Strength Index (RSI) hit 78.01, signaling the asset was seriously overbought. When RSI gets this high, it usually means a correction is coming as traders start taking profits.
Despite the recent bloodbath, many in the Cardano community aren't panicking yet. The price drop hasn't completely destroyed the uptrend, and some see this as a healthy correction rather than the end of the rally.
Can ADA Price Recovery Get Support from New Developments?
There's still some hope for Cardano bulls. The recent integration with Blockchain.com's DeFi Wallet could be a game-changer, giving 37 million users easy access to trade ADA without jumping through hoops.
But here's the problem - trading volume is down a massive 48.02% to $1.72 billion. For ADA to get back on track toward $1, volume needs to pick up. Without retail and institutional buyers stepping in, this rally could fizzle out.
The good news? Cardano is still up 13.35% over the past week, showing the bigger picture remains positive. If the ecosystem can drum up more support and volume starts flowing again, ADA might just shake off this setback and resume its climb toward that elusive $1 target.
Peter Smith
