Key Takeaways:
Cardano fell 1.08% to $0.1830 in 24 hours as an 899% liquidation imbalance wiped out $585,580 in long positions, according to CoinGlass data.
Long liquidations reached $585,580 against $65,090 in shorts, a 9:1 leverage wipeout, CoinGlass data shows. The drop marked a sixth straight daily decline from Aug. 7, leaving ADA down 4.20% on the week.
The selling followed a coordinated reduction by large holders. Wallets holding 1 million to 10 million ADA fell to 2,340 from 2,370 in nine days, crypto analyst Ali said in an Aug. 11 post, as profit-taking after July's rebound triggered a death cross between Cardano's MVRV ratio and its seven-day simple moving average. The Tom DeMark Sequential also flashed a sell signal on the daily chart.
Momentum indicators keep a bear trap in play. The daily relative strength index sits at 52, above the neutral 50 line, suggesting bulls retain control even as short exposure builds. A rebound would force those shorts to cover, while a break lower targets deeper support. The broader crypto market saw $159 million in total liquidations as traders digested July's consumer price index, which rose 0.1% month over month in line with expectations, with the producer price index due Thursday.
The liquidation skew points to crowded long positioning that has already been partly flushed, yet persistent whale selling keeps downside risk alive. Cardano's next test is whether it can hold the $0.18 area; a close below that level would confirm the death cross and open a path toward the July lows near $0.16. Bitcoin, trading near $63,600, offers the macro cue — a sustained crypto-wide recovery would likely drag ADA higher and squeeze the short book built over the past week. With the RSI still in positive territory and shorts piling in, the setup favors a sharp reversal if buyers defend the current support zone.
This article is for informational purposes only and does not constitute investment advice.
