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Cardano (ADA) has dropped by over 8% in the last 24 hours as the price continues on a downward path. This development has led to severe liquidation within the period as a total of $8.3 million worth of ADA was wiped out. This takeout comes amid the 29% rally the coin recorded in July and a historically negative August.
According to CoinGlass data, long position traders suffered the bulk of the liquidations. Notably, investors betting on a bullish outlook for Cardano suffered $8.12 million in losses when the price plunged on the crypto market.
As of press time, Cardano is changing hands at $0.7217, reflecting an 8.05% decrease. The asset traded at a peak of $0.7848 in earlier sessions, likely fueling anticipation of its potential to surge toward the psychological $1 level.
However, the broader cryptocurrency market crashed by 3.95% and impacted most assets in the sector. Bitcoin has also suffered a 3.03% decline, while the leading altcoin, Ethereum, has dipped by 6.43% within the same 24-hour time frame.
The plunge has sparked anxiety among investors as they keenly monitor price movement, concerned about the $0.70 support level. Cardano had previously broken the $0.735 support and could do the same with the $0.70 level if ecosystem bulls fail to act.
Short-position investors also recorded mild losses, which stood at $182,310, indicating that most market participants were anticipating upward price movement.
Cardano has the potential to rebound as the Relative Strength Index (RSI) is at 31.57, suggesting the asset is leaning into oversold territory. A recovery is possible, particularly with the high bullish sentiments among Cardano traders.
If the broader market experiences a recovery, Cardano looks poised to rise with it.
Additionally, developers in the Cardano ecosystem are working on Starstream. The project could allow for scalable interactions on blockchains as users generate zk-proofs for smart contracts directly in web browsers.
The move could support the price outlook as Cardano becomes more appealing to users in the crypto space.
