Abnormal 600% Imbalance Stuns Cardano (ADA): What's Happening?

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Cardano (ADA) has seen a significant liquidation gap between long and short positions opened with the token in the perpetual futures market in the last 24 hours. Thus, according to data from CoinGlass, cumulative liquidations with derivatives on ADA totaled more than $350,000 during the period in question. 

The thing is, however, that $300,000 of them, i.e., 85.7%, were liquidations of short positions, i.e., those aimed at a fall in the price of the Cardano token. 

Source: CoinGlass

Such a collapse of short positions can be justified by the attempts of bears, i.e., sellers, to play on the fall of the Cardano token, which came yesterday, to the key price resistance zone around $0.38 per ADA. 

Nevertheless, exactly the opposite happened, and the resistance level was broken by a powerful breakout. As a result, bears suffered liquidations six times higher than those of long positions over the same period of time, while the Cardano token showed growth of 3.36%. 

Whose side does one take now?

After the breakout, as is usually the case, Cardano's price suffered a sell-off. It is funny that bears were waiting for it at the key resistance level, but the bulls organized it after all, having filled their pockets with additional profit percentages after fixing positions.

However, the sell-off also had a very limited range when, at $0.38, buyers started to buy back the token again and open long positions. 

Source: TradingView

Thus, it can officially be stated that this level now serves as a meaningful support for the ADA price. This means that as long as the Cardano token is above this price point, a bullish bias remains for it.