The cryptocurrency market recently witnessed a significant upheaval as Cardano liquidation imbalances left investors taken aback. On Wednesday, the majority of digital currencies saw a downturn, pushing the overall market capitalization below the $3 trillion mark for the third time this month. This shift has sparked concerns among investors, as the market sentiment deteriorated alongside price movements.
Currently, Cardano is trading at $0.38, reflecting a 1.91% decrease in the past 24 hours and an 18% decline over the week. This marks a pivotal moment for Cardano as it grapples with a significant liquidation imbalance, with leveraged longs bearing the brunt of the downturn.
Cardano Liquidation Imbalance Exceeds 1,303%
According to data from CoinGlass, over the last 24 hours, Cardano experienced a total liquidation of $1.24 million. Astonishingly, more than 93% of this figure represents leveraged longs, totaling $1.18 million. In contrast, short positions amounted to only 86,380, resulting in a staggering 1,303% imbalance in liquidations. This scenario highlights the pressure faced by long holders as the market struggles to maintain stability.
The next critical support level for Cardano bulls is identified at $0.32. This level has been significant in the past, as Cardano witnessed a remarkable 216% rise in November 2024, indicating its potential as a rebound point.
Exciting Developments Await Cardano in 2026
Looking ahead, the year 2026 promises significant advancements for the Cardano ecosystem. At the beginning of December, a new protocol upgrade proposal was submitted for community review. This upgrade aims to enhance Plutus performance, ledger consistency, and node security, all without altering transaction structures or transitioning to a new ledger era.
Furthermore, there is a strategic move with the approval of the Cardano Critical Integrations Budget, which allocates 70 million from the Treasury to support key ecosystem integrations. This funding will focus on critical infrastructure components, including tier-1 stablecoins, institutional digital asset custody solutions, wallets, cross-chain bridges, pricing oracles, and advanced on-chain analytics.
These initiatives underpin Cardano’s commitment to strengthening its network and ensuring robust infrastructure development as it moves toward 2026.
