Cardano (ADA) Price Carnage: $1 Million Longs Obliterated as Bulls Retreat

Blood in the crypto streets—Cardano's ADA just got hammered. Another 'stable' altcoin proving Wall Street's favorite joke: 'Digital gold? More like digital fool's gold.'

Liquidation massacre hits $1M

ADA longs got steamrolled in a classic crypto squeeze. The so-called 'Ethereum killer' bled out alongside the broader market—turns out even proof-of-stake darlings aren't immune to good old-fashioned panic selling.

Technical breakdown

Key support levels shattered like a DeFi protocol with unaudited code. The chart tells the story: a textbook rejection at resistance, followed by cascading liquidations. Traders now watching whether the 200-day MA holds—or if this becomes another 'buy the dip' graveyard.

Silver lining for degenerates?

Perpetual funding rates flipped negative—the first time in weeks. Might signal capitulation...or just another trap before the next leg down. Either way, the leverage junkies just got a brutal reminder: the market takes no prisoners.

TLDR

• Cardano (ADA) has declined 5.65% over the past two days, trading below $0.570 and the 100-hourly moving average
• The MVRV ratio has turned negative at -12.27%, indicating ADA is undervalued with average investors facing losses
• Long liquidations reached over $1 million, far exceeding $180K in short liquidations, showing bearish sentiment
• ADA is trading within a falling channel pattern with key support at $0.55 and resistance at $0.5850
• Open Interest dropped 2.15% to $712.27 million as funding rates declined from 0.0075% to 0.0029%

Cardano has entered a fresh decline phase, dropping below the $0.5750 zone over the past two sessions. The cryptocurrency is currently trading below $0.570 and the 100-hourly simple moving average.

ADA has fallen 5.65% over the last two days, breaking below key support levels. The price dropped below the 23.6% Fibonacci retracement level of the upward MOVE from $0.5102 to $0.5938.

A bearish trend line has formed with resistance at $0.570 on the hourly chart. The bears pushed the price below $0.5520 support before finding temporary stability.

Cardano recovered 1% at press time on Friday, edging higher from short-term support at $0.55. However, the broader price action remains within a falling channel pattern.

The falling channel connects swing highs from May 23 and June 11 for the resistance line. The support line connects bottoms from May 19, June 5, and June 19.

On-Chain Metrics Signal Undervaluation

The Market Value to Realized Value ratio has turned negative to -12.27%. This means if all ADA tokens were sold, the average investor WOULD face a loss of roughly 12%.

When market value falls below realized value, Cardano becomes undervalued. Similar conditions occurred in 2024 and during 2022-23.

The negative MVRV ratio suggests intense profit-taking by investors has pushed the token into oversold territory. This metric historically indicates potential buying opportunities for long-term holders.

Open Interest has declined 2.15% to $712.27 million in the last 24 hours. The drop reflects reduced capital inflow as positions close amid bearish sentiment.

Derivatives Data Shows Bearish Shift

Long liquidations totaled over $1 million, vastly exceeding the $180,000 in short liquidations. This massive imbalance shows bullish traders getting wiped out.

The long/short ratio dropped to 0.9429, indicating a shift toward short positions. Funding rates fell from 0.0075% on Thursday to 0.0029%.

Lower funding rates suggest cooled buying activity as the balance between swap and spot prices adjusts. Trading activity has declined as confidence wanes.

The immediate resistance sits at $0.5850, with the next level at $0.5920. A close above $0.5920 could trigger a rally toward $0.620.

If ADA fails to break above $0.5850, another decline becomes likely. Support levels are at $0.5520 and $0.530.

A break below $0.530 could open the path to $0.5120. The next major support sits at the psychological $0.50 level.

The MACD indicator shows bearish momentum as it gains strength in the negative zone. The RSI sits below 50, confirming the downward pressure.

Multiple lower shadow candles suggest some buying interest at current levels. However, ADA continues to struggle against the 50-period Exponential Moving Average.

The 4-hour chart shows cardano failing to surpass dynamic resistance within the falling channel. A close below $0.55 could extend the correction to the weekly low of $0.52.

The RSI at 44 shows some uptick as Cardano edges higher from its newly formed base. A closing above the 50-day EMA could propel the price toward the channel’s upper boundary NEAR $0.63.

Current price action suggests ADA remains under pressure with bears maintaining control of the short-term trend.