Compass Investments

– ADA is quoted around $0.264, with $9.93 million in long liquidations centered at $0.253. LONG liquidations

the network’s realized P/L remains higher than at the end of January, indicating continued selling pressure.

A daily close above the $0.2856 level is needed to shift the bullish bias towards the $0.3004 resistance zone.

Cardano (ADA) is trading around $0.264 on March 21, right above a tight liquidation cluster that could lead to a $9.93 million long position cancellation if the price drops 4% to $0.253.

Onchain data shows that the network’s realized losses are down significantly from March lows, hinting that the worst phase of capitulation may have passed for ADA, but placing derivatives below the current price still poses near-term risks.

Santiment’s statistics for the period from February 19 to March 20 show that Cardano’s realized profit/loss was negative throughout the entire period, with ADA losses on the right axis ranging from -6.56 million to -47.38 million ADA.

The deepest drop occurred around March 8, when net realized losses were approximately -44.28 million ADA. This value coincided with a cyclical low on the price chart, where ADA reached $0.2547 on TradingView’s daily chart. Since then, the loss ratio has improved markedly.

As of March 20-21, the figure was -10.04 million ADA, the lowest loss volume since February 22. This reduction from -44 million to -10 million represents a decrease in chain losses of approximately 77% .

However, the metric has yet to move into positive territory. As long as realized profits do not exceed realized losses, the network will remain in net distribution mode, and sustainable price recovery will be difficult to achieve.

Holders are recording losses rather than profits, which traditionally weakens buying sentiment and creates persistent downward pressure until capitulation clears the market.

Are Cardano long traders in danger?

The liquidation map shows a concentrated accumulation of long liquidations starting at $0.275 and accelerating to $0.253. At exactly $0.254, the cumulative leverage of long liquidations reaches $9.93 million.

Short liquidation leverage increases on the opposite side of the current price, rising from $0.277 to about $20.89 million at $0.300.

This structure represents a classic liquidity constraint. Cardano’s price at $0.264 sits between two opposing liquidity pools, but closer and more accessible is the lower cluster of longs at $0.253.

Market makers and larger participants often target such clusters. A significant breakout is not required to move to $0.253 – a 4.1% decline from current positions is enough.