Cardano (ADA) has joined the ongoing cryptocurrency rally as the price spiked by over 15% in the last 24 hours. This has triggered a staggering 4,146% liquidation imbalance in one hour as short position traders were caught unawares.
According to CoinGlass data, within the last hour, traders betting short in the Cardano futures market have seen $274,620 wiped out. This followed the sudden spike in price as ADA broke above the 200-day exponential moving average (EMA).
This development supported Cardano’s move above the $0.64 support. As of press time, Cardano is exchanging at $0.7260, which represents a 15.49% increase in the last 24 hours. Trading volume has also witnessed a spike as transactions have pushed it up by 55.84% to $1.76 billion within the same time frame.
Meanwhile, long position traders experienced some level of liquidations as $6,470 were wiped out within the last hour. The huge liquidation imbalance resulted from the sudden upward price movement, as short-term investors were not anticipating such gains in value.
Notably, Cardano’s increase is coming as the cryptocurrency market recorded a surge of 6.29%, leading to many assets gaining in value. Bitcoin has soared to a new all-time high (ATH) above $118,000 amid the market surge.
Cardano stands a chance at hitting higher levels, possibly attempting the psychological $1 level if market participants sustain the current momentum. Currently, ADA is supported by Bitcoin’s correlation.
Additionally, ADA’s Bollinger Bands have teased a potential breakout move for the asset. The technical indicator signals a decreased volatility level for Cardano. Investors will have to monitor trends to see how far the growth might go for ADA.
It is worth mentioning that, although Cardano’s dominance is rising, the journey to $1 might face profit-taking hurdles at $0.75. Many investors might want to sell their asset at this level, given the long volatility period that ADA experienced. However, if it overcomes the potential sell pressure, Cardano might hit $1 in the current rally.
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