Cardano (ADA) Faces 94% Liquidation Imbalance as Price Falls

Cover image via U.Today

Following a relatively calm trading session yesterday, the cryptocurrency market has returned to negative territory, with total liquidations reaching $495 million in the past 24 hours. Cardano (ADA), a prominent cryptocurrency, experienced significant losses during this period.

Crypto Market Liquidations Surge

CoinGlass data reveals $495 million in total cryptocurrency market liquidations over the last 24 hours. This affected 130,553 traders, with the largest single liquidation order totaling $17.15 million on the Bitfinex exchange.

While not the largest single loss, Cardano's liquidations contributed substantially to the overall figure, totaling $11.85 million. This comprised $8.73 million from long positions and $3.12 million from short positions, representing a 94% imbalance. This highlights the swift and potentially devastating impact of leverage trading.

The largest single cryptocurrency loss accounted for $301.39 million of the total liquidations, with approximately $186 million attributed to long positions and $115 million to short positions. Other major cryptocurrencies affected include Ethereum (ETH), XRP, and Solana (SOL).

Bitfinex, Bybit, and Binance experienced the highest liquidation volumes, at $144.8 million, $128.8 million, and $91.32 million respectively.

ADA Price Outlook

ADA has shown steady accumulation in recent months, recently reaching the $1 price point. This surge followed the U.S. government's finalization of documents establishing a cryptocurrency reserve. However, this momentum has faltered, at least temporarily. Liquidations have unwound leveraged positions, prompting traders to reassess their risk exposure.

At the time of writing, ADA is trading at $0.819, a 7.3% decrease in the last 24 hours. Trading volume has also declined by 11.5% to $2.6 billion, indicating waning investor interest. ADA is currently the ninth-largest cryptocurrency by market capitalization, now behind Dogecoin (DOGE). Read original article on U.Today