Cardano News: Price Set for a Squeeze as $136M in Shorts Risk Liquidation

Cardano (ADA) traders are watching closely as the cryptocurrency consolidates around current levels, with a massive wall of short positions creating an intriguing setup. Market data reveals that over $136 million in shorts are positioned near a key technical level, potentially creating conditions for a dramatic price move.

ADA Price Consolidates Before Potential Breakout

Cardano is trading around $0.817, maintaining stability after recent market swings. Trader has highlighted $0.91 as the critical level where short positions are heavily concentrated. If ADA pushes toward this price point, it could trigger a short squeeze – forcing traders to buy back their positions and creating strong upward pressure.

These liquidation clusters often act like magnets, drawing price action toward areas where leverage is concentrated. For ADA, the $0.91 level has become the key battleground.

$136M in ADA Shorts Positioned at $0.91

Exchange data reveals the magnitude of this setup:

• $136.68M in total short liquidations stacked near $0.91
• Binance holds 146.67K ADA in short positions
• OKX adds 21.69K ADA in short exposure

If ADA climbs into this zone, forced liquidations could create a cascade effect, amplifying buying pressure and pushing the token higher.

What to Expect for Cardano (ADA) Price

A break into the liquidation zone could quickly extend gains beyond $0.91 as short sellers rush to cover their positions. However, if ADA fails to hold above $0.82 support, it may remain stuck in its current trading range.

With shorts heavily positioned against the token, market dynamics suggest upward movement may face less resistance than downward moves.