Key Takeaways:
Cardano’s ADA token fell 5.7% to test the $0.25 support level on April 9 as a wave of long liquidations hit the market.
"The move was intensified by over $1.5 million in ADA long liquidations in the past 24 hours, with the majority occurring on the Binance and OKX exchanges," according to data from Coinglass.
The price of ADA on the Ethereum network dropped from a high of $0.263 down to the $0.2500 level, a price point not seen since the previous week. The sharp increase in liquidations suggests that many traders who had bet on a price increase were forced to sell their positions, adding to the downward pressure. Data also shows a decline in open interest for ADA perpetual futures, signaling reduced conviction from traders.
A sustained break below the $0.2500 support zone could trigger a more significant price correction, with the next major support area located near the $0.22 level. This move could also negatively affect other large-cap altcoins like Solana (SOL) and Avalanche (AVAX), as traders watch Cardano as a bellwether for broader market sentiment.
This article is for informational purposes only and does not constitute investment advice.
