Key Insights
- Cardano dropped 8% in 24 hours with $8.3 million liquidated, mostly from long traders betting on continued bullish movement.
- The asset tested the $0.70 support after breaking $0.735, raising concern as broader crypto markets also saw significant declines.
- Starstream development highlights Cardano’s ecosystem growth, focusing on zk-proof scalability that could support long-term value stability.
Cardano recorded a sharp decline of more than 8% in the past 24 hours, wiping out gains from recent sessions. The cryptocurrency fell to $0.7217 after touching $0.7848 earlier in the day. The selloff fueled liquidations totaling $8.3 million, according to market data.
Long position traders faced the heaviest impact with losses of $8.12 million. Short traders also recorded losses, although limited to $182,310. The figures highlight that the majority of investors had anticipated an upward trend.
Wider Market Correction
The drop came as the broader cryptocurrency market fell by 3.95%. Bitcoin declined by 3.03%, while Ethereum dropped by 6.43%. The weakness across the market added pressure on Cardano and erased optimism from its 29% rally in July.
Cardano had earlier broken support at $0.735 and now faces renewed pressure near $0.70. Investors remain cautious, as another breakdown could trigger further downside. Traders continue to monitor these levels closely as market sentiment shifts.
Oversold Signal Appears
Despite the decline, the Relative Strength Index shows a reading of 31.57, which signals that Cardano is moving into oversold territory. This indicator often precedes price rebounds if broader market conditions stabilize.
Developers in the Cardano network are advancing the Starstream project. This initiative seeks to improve blockchain scalability by enabling zk-proof generation within web browsers. The progress could improve adoption and offer longer-term support to the asset’s value.
