Why is Cardano (ADA) at risk of a long squeeze right now?

Cardano is trading near $0.264, just above a liquidation cluster around $0.253. If price drops about 4%, nearly $10 million in leveraged long positions could be forced to close. This creates downside pressure through cascading liquidations.

What is a long liquidation or long squeeze in crypto trading?

A long squeeze happens when traders betting on price increases are forced to sell as prices fall. Their positions get liquidated, accelerating the drop. In ADA’s case, this risk is concentrated near $0.253.

How much leverage is at risk for Cardano traders?

Approximately $9.93 million in long positions is clustered around the $0.253 level. This is a significant amount of leverage in a tight price range. It makes ADA vulnerable to sharp, short-term moves lower.

What does on-chain data say about Cardano’s current trend?

On-chain data shows realised losses are still dominating, meaning more investors are selling at a loss than a profit. Although losses have reduced from -44 million ADA to about -10 million ADA, selling pressure remains. This suggests recovery is not yet confirmed.

Is Cardano still in a bearish trend?

Yes, the network remains in a net loss state, which typically signals ongoing distribution. Buyers are still hesitant, and sentiment is weak. Until realised profits exceed losses, the trend remains fragile.

What are the key resistance levels for ADA right now?

Cardano faces strong resistance between $0.2856 and $0.3004. Multiple attempts to break above this zone have failed. This makes it a critical barrier for any bullish reversal.

What needs to happen for Cardano to turn bullish?

ADA needs a daily close above $0.2856 to shift momentum in favour of bulls. This would turn resistance into support and open a path toward $0.3004 or higher. Without this move, upside remains limited.

What are the downside price targets for Cardano?

If ADA breaks below $0.253, it could test support levels near $0.2438. The liquidation cluster sits between key support zones, increasing the chance of further downside. This makes the current range critical.

Cryptocurrency

Image for illustrative purposes only. Not a real photo.

Cardano faces $10M long liquidation risk

Written by Brie CarterPublished Mar 22, 2026, 12:00 AM

Cardano’s ADA token is trading near $0.264, sitting just above a key liquidation zone that could trigger nearly $10 million in long position liquidations.

On-chain data shows realised losses have declined significantly from March lows but remain negative, indicating continued selling pressure across the network.

Santiment data shows realised losses narrowing from around -44 million ADA to -10 million ADA, suggesting capitulation is easing but not yet complete.

The liquidation map highlights a dense cluster of leveraged long positions near $0.253, which could be triggered by a roughly 4% price drop.

At the same time, short liquidation levels sit above $0.277, requiring a stronger move higher to unwind bearish positions.

Technical indicators show ADA facing resistance between $0.2856 and $0.3004, with repeated failed breakouts reinforcing this zone.

A sustained move above $0.2856 would shift momentum bullish, while failure to hold support could lead to further downside toward the $0.2438 level.

At the time of reporting, Cardano price was $0.2586.