Cardano Traders Face $118K Liquidations Amid $0.85 Price Swings

Cardano (ADA) experienced heightened price volatility around the $0.85 level, triggering significant liquidations as traders reacted to sharp price swings. After briefly breaking through the $0.85 resistance, ADA retraced and dropped intraday to as low as $0.8449. During this one-hour window, long-position traders faced nearly $118,640 in liquidations, according to CoinGlass data [1]. Short-position holders also suffered losses, albeit much smaller, with $1,600 in losses during the same period [1]. The imbalance in liquidations highlighted the intense pressure on leveraged traders as ADA struggled to hold key psychological levels.

Despite the price decline, trading volume for Cardano increased by 8.82% to $2.57 billion within the last 24 hours [1]. The rise in volume suggests continued investor activity, particularly from short-term traders seeking to capitalize on price swings. However, analysts noted that the increased volume may reflect short-term profit-taking rather than signs of renewed bullish accumulation [1].

Cardano’s market capitalization also saw a notable decline, dropping from $33.5 billion to $30.58 billion [1]. This retreat reversed recent gains that had briefly pushed ADA ahead of Tron and Dogecoin in market cap rankings. The broader bearish sentiment affected the entire crypto market, with ADA trading near $0.85 amid ongoing uncertainty [1].

The price action over the past week underscored the challenges faced by ADA bulls. While the token had briefly crossed the $1 mark, strong selling pressure and widespread profit-taking have made it difficult for buyers to maintain momentum. Traders who anticipated a stronger breakout are now reassessing their short-term expectations as ADA struggles to hold key support and resistance levels [1]. The inability to sustain price above $0.85 has further delayed hopes for a sustained recovery.

On a broader market level, over $400 million in liquidations were recorded across the crypto market in the last 24 hours, with Ethereum falling below $4,200 and triggering panic among investors [3]. While ADA remains in a critical phase, any decisive break above or below $0.85 could lead to more pronounced price movements. Investors are advised to closely monitor on-chain metrics and overall market sentiment as ADA’s trajectory remains highly sensitive to investor behavior [1].

Source:

[1] Cardano Sees Price Volatility and Liquidations Near $0.85 (https://cryptofrontnews.com/cardano-sees-price-volatility-and-liquidations-near-0-85/)

[3] Latest Crypto News, August 19 – Bitcoin Price Struggles To... (https://99bitcoins.com/news/altcoins/live-latest-crypto-news-august-19-bitcoin-price-struggles-to-hold-115k-xrp-reclaims-3-best-altcoins-to-buy-right-now/)