Cardano $13M Liquidations Trigger Dip, DeFi Wallet Launch
Cardano (ADA) saw a 92.4% surge in trading volume to $4.53 billion amid bullish derivatives flows. Futures open interest rose 12% to $1.45 billion, funding rates climbed to 0.0285, and the Binance ADA/USDT long/short ratio hit almost 3:1. These factors pushed ADA to an intraday high of $0.8601, up 4.6%, with a positive MACD.
Yet an unprecedented 1 512% liquidation imbalance wiped out $13.08 million of long positions and $764 060 of shorts as prices tumbled to $0.8008. ADA now trades at $0.8208, down 3.64%, with RSI overbought near 78 and trading volume down 48% to $1.72 billion. This RSI overbought condition signals waning momentum and a short-term pullback. Traders will watch ADA’s integration into Blockchain.com’s DeFi Wallet—opening access to 37 million users—as a bullish catalyst if volume recovers toward the $1 mark.
Bearish
While Cardano’s integration into Blockchain.com’s DeFi Wallet offers a medium-term bullish catalyst by expanding ADA’s user base, the immediate effect of the 1 512% liquidation imbalance and resulting $13 million of long-position losses is bearish for price action. The sharp pullback, RSI remaining in overbought territory, and a 48% drop in trading volume highlight weakened momentum. In the short term, traders are likely to exercise caution, increasing sell orders and pressure on ADA’s price. However, if volume recovers and DeFi wallet adoption drives renewed demand over a longer time frame, ADA could regain bullish momentum and test resistance near $1.