Cardano's Price Bounce Squeezes Over $1 Million in Short Positions

Cardano's (ADA) price has triggered a wave of short liquidations worth over $1 million, according to data from CoinGlass. In early August, margin traders became overly confident that ADA would fall to $0.15 and opened one-sided bets on further downside.

However, the token found support at this level and began climbing instead. As it broke above the $0.185 level, an impulsive breakout pushed ADA to a peak of $0.193, triggering margin calls across sellers' positions.

The forced buying to cover short sellers' losses accelerated the rally and propelled ADA into the top liquidation rankings. CoinGlass's heat map shows that a total of $1.63 million worth of ADA positions was liquidated, with $1.09 million lost by short sellers.

The market is now heavily imbalanced in favor of longs, who have suffered almost no damage. The 'Max Pain' map indicates that the next major pool of short liquidations sits at $0.19396, requiring only a 4.45% rise for ADA to trigger another wave of forced short closures.