ADA's Modest 2.55% Pump Puts $3.77M in Shorts on the Chopping Block — Time to Gain? Let's Peep

Cardano's native token $ADA is attempting to break its streak of three consecutive red candles with today's green candle on March 30th. The move might not exactly set off fireworks, but sometimes a small spark is all it takes to light a short squeeze.

A significant amount of short-leveraged positions are now on the verge of liquidation amid this recovery. Looks like some degen decided to fade Cardano one too many times.

At press time, $ADA gained a modest 2.55% over the past 24 hours and was trading at $0.2501. The asset recorded a low of $0.235 during this period. For context, that's roughly the price movement equivalent of a Cardano community member admitting they actually read the whitepaper.

Strong market participation has also been observed, with trading volume surging over 33% to $445 million. Someone's definitely paying attention now — probably the same whales who were "quietly accumulating" last week.

Short Sellers Feeling the Heat

As Cardano's price and market participation begin to rise, derivatives data from CoinGlass revealed that $3.77 million worth of short-leveraged positions are nearing liquidation. To the bears who thought $0.235 was the floor forever: oops.

$0.236 on the lower side and $0.252 on the upper side were two key levels where intraday traders have shown strong interest. At these levels, traders have built $9.25 million in long-leveraged positions and $3.77 million in short-leveraged positions, which $ADA was now approaching. The longs are basically sitting there with popcorn, waiting.

Resistance in Sight

The next major resistance appears near $0.27. If $ADA crosses the $0.252 level, it could see a quick uptick. We're talking the kind of quick that makes traders frantically refresh their screens like it's 2017 again.

The Long/Short Ratio has reached 1.16, its highest level in the past month, indicating that traders' bullish sentiment is strongly dominating. More traders are betting on the price to rise rather than fall. Finally, the bulls have something to smile about — even if just a little.

21% Jump Potential

The daily chart showed that $ADA has successfully tested its key support level of $0.235, a level it has been holding since January 2021.