- Cardano short traders suffered major losses as a 1,454% liquidation imbalance unfolded within four hours, with $169,450 wiped out from bearish positions.
- Despite ongoing price volatility, optimism around a potential ADA ETF continues to fuel hopes for a bullish reversal.
Cardano (ADA) has once again proven its unpredictability, leaving futures traders reeling after a sharp and unexpected price swing triggered a massive liquidation imbalance. Within just four hours, short traders faced an astonishing 1,454% liquidation imbalance, marking one of the most dramatic episodes in recent ADA trading history.
According to data from CoinGlass, ADA futures saw a total liquidation volume of $180,350 within the period. While long positions accounted for a modest $10,900 in losses, short sellers were hit much harder, suffering a staggering $169,450 in liquidations. This sharp contrast has put bearish traders on edge and sparked renewed debate around ADA’s short-term outlook.
Cardano Price Volatility Continues to Shake the Market
This liquidation frenzy coincides with ongoing volatility in the crypto space. ADA’s price currently hovers around $0.558, down 0.73% in the past 24 hours. Despite this mild decline, the broader crypto market has shown signs of instability as Bitcoin struggles to push past the $107,000 resistance, and Ethereum slips to $2,450. Other altcoins like solana, Dogecoin, and XRP are also trending downward.
The recent ADA price behavior, however, has caught many off guard. Its unexpected resilience against short pressure has led to substantial losses for bearish traders, undermining the confidence of those betting against the token.
ETF Speculation Fuels Hope Amid Chaos
Despite the turbulence, some investors remain optimistic about ADA’s future. Much of this hope stems from the growing buzz around a potential ADA-related Exchange-Traded Fund (ETF). Grayscale recently proposed converting its Digital Large Cap Fund—featuring ADA, XRP, and solana—into an ETF. The U.S. Securities and Exchange Commission (SEC) has formally acknowledged the amendment, sparking speculation that ADA might soon benefit from broader institutional exposure.
The key question now is whether ADA can leverage this sentiment to recover from its volatile streak and push to new highs. Market analysts suggest that much depends on how investors react to continued price swings and the broader trend of ETF adoption.
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