The overall negative sentiment in the market has encouraged short-term ADA derivatives traders to increase capital allocation and leverage in short positions.
This behavior has significantly increased the total volume of short position liquidations. If ADA rises to $0.45 this week, short positions could incur losses of up to $50 million. Conversely, if ADA falls to $0.35, long positions could face liquidations of around $19.5 million.
A key factor that ADA short traders should consider to reduce risk is the positive sentiment surrounding the Midnight project.
Midnight Network is a new blockchain developed by Input Output Global (IOG), the company behind Cardano, founded by Charles Hoskinson.
Midnight Network focuses on privacy using zero-knowledge proof technology, specifically ZK-SNARKs. The NIGHT token has increased by more than 150% in the last seven days.
The growing demand for NIGHT is driving the demand for ADA.
$NIGHT
