Cardano’s native token, ADA, has faced extreme volatility over the past 48 hours, leading to massive liquidations across the market. According to on-chain analytics firm Coinglass, a total of $40.80 million worth of ADA positions were liquidated in the last 24 hours, with long traders bearing the brunt of the losses.
Massive Liquidations Rock ADA Market
Recent data reveals that $30 million in long positions and $11 million in short positions have been wiped out amid ADA’s dramatic price swings. The steep decline reflects heightened market uncertainty as traders struggle to anticipate the token’s next move.
Price Plummets 25% as Trading Volume Declines
ADA has recorded a significant 25% drop in price, currently trading near the critical support level of $0.81. Alongside this price downturn, ADA’s trading volume has decreased by 30%, suggesting waning trader participation in the short term.
Technical Analysis: Key Support and Resistance Levels
With ADA now hovering around the $0.80 support level, analysts suggest this price point could be pivotal for future movements. Historically, ADA’s price action indicates that if the asset maintains this level, it could trigger a strong rebound, potentially rising 35% to reach $1.14. However, failure to hold this support may result in a further 20% drop, pushing the price toward $0.65.
Despite the turbulence, long-term holders appear to be accumulating ADA. On-chain data from Coinglass reveals that over $110 million worth of ADA has been withdrawn from exchanges in the past 48 hours, signaling strong confidence among investors. This substantial outflow suggests that bulls are strategically positioning themselves for a potential price surge.
What’s Next for ADA?
As market participants closely watch ADA’s movements, its ability to hold the $0.80 support level will be crucial. If buying pressure continues to build, ADA could be poised for a significant rebound. However, traders should remain cautious, as further declines remain a possibility if bearish momentum persists.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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