Cardano faces a pivotal moment after over $6 million in long positions were liquidated, with ADA retreating from the key $0.80 psychological level.
Long positions are bullish leveraged bets, but sharp price drops can trigger automatic liquidations once key levels are breached. The more than $6M wipeout signals a steep decline, enough to force widespread selling.
Nevertheless, some analysts see this as cleaning out of leveraged exposure, potentially setting the stage for a more stable or even bullish trend once weak liquidation levels are cleared.
For instance, Creepy Cyborg stipulates that with over $6M in longs wiped out, the leverage flush could pave the way for a stronger, more sustainable rally.
Cardano Eyes the $0.90 Zone
According to market analyst Lingrid, ADA is retracing from its recent high to test mid-channel support within a descending wedge, yet its structure remains bullish following July’s explosive breakout.
She added, “A breakout above the local trendline could trigger a move toward the $0.88–$0.90 target zone. Bulls are likely preparing for another impulsive push higher.”
At the time of this writing, Cardano was hovering around the $0.7719 zone, according to CoinMarketCap data.
Meanwhile, ADA is set to integrate with Apple Pay, potentially exposing the altcoin to over 500M users and positioning it for broader mainstream adoption.
