"Cardano's $1.5B Liquidation: ADA Plunges 25% Amid Crypto Turmoil"

Cardano, the fifth-largest cryptocurrency by market capitalization, has been grappling with significant selling pressure and a loss of key support levels amidst broader market turmoil. Despite the challenges, the potential for a rebound remains, as investors and traders closely monitor the situation.

The recent downturn in the broader cryptocurrency market has led to a sharp decline in investors' confidence, resulting in substantial liquidations. According to a COINOTAG analyst, the sell-off was unprecedented, with over $952 million in liquidations within a few hours, highlighting the current fragility in the crypto market.

Cardano (ADA) has not been immune to the market's volatility. The cryptocurrency experienced a severe crash that eliminated over $1.5 billion in liquidations, with the selling pressure extending into Friday. ADA's value plummeted to $0.607, marking a steep decline of nearly 10% in just 24 hours. Over the course of the week, ADA has shed a staggering 25% of its value, underscoring the urgency for investors to reassess their positions.

The recent drop has caused ADA to breach its 200-day Simple Moving Average (SMA) for the first time in this bull cycle, recorded at approximately $0.661. This level has been a vital support buffer since early November 2024 when ADA had surged to a high of $1.32. The fact that ADA is now below this critical threshold raises concerns among traders about a potential prolonged bearish trend. Historically, such performances have consistently resulted in a reevaluation of investment strategies within the crypto community.

As panic ensues, many are left speculating about Cardano's next steps. The daily Relative Strength Index (RSI) shows readings below 30, suggesting ADA may be oversold and due for a correction or rebound. Historical trends indicate that assets that reach this territory often experience a price rally. Investors are closely monitoring whether ADA will reclaim the 200-day SMA as a support level. If it does, this could signal an uptick in bullish sentiment, potentially leading to renewed interest from buyers.

The potential recovery of Cardano is intricately linked to the performance of leading cryptocurrencies like Bitcoin. Should Bitcoin regain its footing, there is a possibility that