Cardano’s ADA token is facing a critical test at the $0.20 price level amid a sharp imbalance in leveraged liquidations.
Cardano recorded $1.17 million in liquidations over the past 24 hours, according to Coinglass. Long positions accounted for $1.16 million of the total, while short positions represented $11,410.
The imbalance between long and short liquidations reached 10,166%, showing that leveraged long traders bore the overwhelming majority of losses. The concentration of liquidations on one side of the derivatives market could contribute to increased volatility if ADA breaks decisively out of its current range.
ADA is down 3.66% over the past 24 hours at $0.20 as the broader crypto market weakened over the weekend following Fed Chair Kevin Warsh’s hawkish remarks at the Jackson Hole event. According to CME FedWatch, the probability of a September rate hike rose to 42% from 35% a day earlier.
Warsh’s speech had been closely watched because the Jackson Hole event has often provided an opportunity for Federal Reserve leaders to prepare markets for significant policy changes.
Cardano has extended its decline from last Saturday’s high of $0.259 and is now down 9.27% on a weekly basis. ADA fell from a high of $0.218 yesterday, catching bullish traders off guard, as reflected in the predominance of long liquidations.
ADA is currently attempting to hold support at $0.20. Traders will be watching the outcome of that effort closely in the coming sessions.
Cardano Dijkstra Development Gains Momentum
According to Intersect, development work for the Dijkstra era is progressing across node development, protocol parameters, supporting infrastructure and node diversity. Upcoming node releases are expected to enable early testing of Dijkstra functionality.
Node 11.1 is currently in pre-release, while Node 11.2 is expected within the next two to three weeks and will include the Plutus V4 ledger interface. The update is expected to provide greater visibility into Dijkstra and support early testing of its capabilities. However, it should not be considered the hard-fork-ready release.
The feature-complete 11.3 release is expected in the months ahead. The overall Dijkstra delivery timeline continues to be assessed in relation to the node release schedule.
In the meantime, stake pool operators can continue participating in Leios development on the Musashi testnet, with a rewards program announced earlier this month.
