Cardano (ADA) is showing renewed strength as it rebounds toward the critical $1 psychological level, but the surge has exposed a sharp liquidation imbalance. Over the past 24 hours, ADA recorded a 977% disparity between long and short trader liquidations, suggesting that bears may be on the losing side of this rally.
The broader crypto market also experienced high volatility, with $422.9 million in liquidations across 136,253 traders, according to CoinGlass. Among the top liquidated assets, Cardano stood out with significant losses sustained by short positions.
Short Traders Take the Hit as ADA Price Climbs
Cardano saw total liquidations of $7,169,300 in the past day. However, a closer look at the breakdown reveals a surprising twist. Long positions accounted for $6,560,000, while shorts only contributed $609,300 to the total. This created a striking $5.95 million gap, resulting in a 977% imbalance favouring long traders.
The data suggests that many short sellers bet against ADA during its climb, but those positions are now rapidly unwinding. As of this writing, Cardano trades at $0.7607, down by 1.83% in 24 hours. Accompanying the price increase, trading volume surged over 10.3%, crossing $1.1 billion. These metrics reflect growing confidence among bullish traders as momentum builds.
Will ADA Break $1 This Time?
Cardano has tested the $1 level multiple times in recent weeks but failed to break through due to consistent profit-taking. On July 21, ADA reached $0.935, only to pull back shortly afterwards. A week later, on July 28, it formed a lower high at $0.856, signalling weakening upward momentum.
Despite these setbacks, ADA now shows signs of recovery. The token has remained above key daily SMAs, specifically the 50-day SMA at $0.674 and the 200-day SMA at $0.739. Analysts argue that a confirmed breakout above $0.86 could open the door for ADA to push toward $0.90 and $0.95, setting up a potential return to the $1.00 level.
Related article: World Mobile CEO: “Nobody Better Than Hoskinson to Drive Cardano’s Future”
Whale Activity Adds Fuel to Bullish Outlook
Adding to the bullish narrative, ADA whales have started accumulating again. On-chain data shows that whales recently moved 271,092,516 ADA from the Coinbase exchange to unknown wallets, a strong signal of investor confidence.
Such large transfers away from exchanges typically suggest long-term holding intentions. When whales withdraw tokens, they often reduce immediate selling pressure and signal anticipation of price appreciation.
Final Thoughts: Can Bulls Sustain the Momentum?
Cardano’s rebound, paired with a massive liquidation imbalance against short positions, underscores shifting sentiment in ADA’s favour. With price now trading above crucial moving averages and whales quietly accumulating, the stage appears set for another attempt at reclaiming the $1 milestone.
However, any move upward will need to overcome resistance near $0.86–$0.95, where previous rallies stalled. If buyers can push past that range and maintain strong volume, ADA may finally achieve the psychological breakout that’s been months in the making.
