Cardano ($ADA) is approaching a critical price level, with $3.28 billion in short positions at risk of liquidation if the price reaches $1.04. A breakout at this level could trigger massive short liquidations.
Why Short Liquidation Threat is Real
$3.28 billion in short positions are at risk of liquidation if ADA's price surges to $1.04. A short squeeze occurs when a rapid price increase forces short sellers to buy back their positions, leading to further buying pressure. If ADA breaks above $1.04, it could spark a cascade of liquidations, accelerating the rally.
Can Cardano Bulls Push the Price Higher
Cardano has been gaining strength, with recent price action showing bullish signs. If momentum continues, ADA could test key resistance levels and push past $1.04, triggering a wave of short liquidations. Key factors influencing ADA’s price movement include increased on-chain activity and network developments, broader market sentiment, Bitcoin’s price action, and institutional and retail demand for ADA.
What’s Next for Cardano
If ADA successfully breaks above $1.04, traders could see a sharp price rally fueled by short liquidations. However, resistance at this level means that strong buying pressure is needed to sustain the move. For investors, keeping an eye on volume and market sentiment will be key in determining whether ADA can push higher or face rejection at resistance.
Cardano ($ADA) stands on the verge of a potential significant rally should it break past the $1.04 mark. Traders and investors should keep a close watch on the unfolding situation.
