The Crypto Market Liquidation Overview

The crypto market has experienced liquidations totaling $422.9 million from 136,253 traders in the last 24 hours. Cardano (ADA) stands out as one of the cryptocurrencies facing substantial liquidations, with a significant imbalance between long and short traders.

Cardano Shorts Take a Back Seat

Recent data from CoinGlass indicates that Cardano’s liquidations reached $7,169,300 in the past day. This raises concerns about selling pressure; however, the bigger issue is the long-short position imbalance.

Liquidations from long ADA holders totalled $6,560,000, while shorts accounted for only $609,300, creating a $5,950,700 gap and a 977% liquidation imbalance favoring long traders.

Amidst this liquidation scenario, ADA is in the midst of a price rally, currently trading at $0.78, up 1.4% from the previous day. Trading volume surged over 36%, reaching $1.2 billion.

How Soon Can ADA Revisit $1?

ADA has made several attempts to hit the $1 mark this month but has been stuck around the $0.80 level. On July 21, it peaked at $0.935, only to lose momentum later. By July 28, ADA traded lower at $0.856.

Analysts attribute its struggles to profit-taking, as traders cashed in gains after a strong rally in July, leading to a slowdown in upward movement.

Despite this, bulls seem to be re-emerging, keeping ADA above its daily SMA 50 and 200 levels at $0.674 and $0.739, respectively. A breakout above $0.86 could push ADA toward the $0.90 and $0.95 range, potentially revisiting $1.

Additionally, recent movements by ADA whales, who transferred 271,092,516 ADA from Coinbase to unknown wallets, indicate bullish confidence, suggesting a possible significant price shift for ADA.