Cardano (ADA) experienced a sharp price decline on Christmas Day, extending losses on the hourly chart. The drop was marked by a significant red hourly candlestick that triggered substantial long liquidations. According to data from CoinGlass, $167,850 in long positions were liquidated in a single hour, vastly overshadowing short liquidations of just $243. This created a staggering liquidation imbalance of 66,530% between shorts and longs.
The sell-off occurred despite a broader market rally earlier in the day, catching bullish traders who were anticipating a seasonal "Santa rally" off guard. Trading volumes were light due to the Christmas holiday, with Cardano's volume dropping 22% to approximately $380 million, a pattern typical during major holidays when liquidity thins and defensive positioning increases.
At the time of reporting, ADA was trading around $0.35, down 2.09% over 24 hours and 3.67% weekly. The price action has reignited discussions about ADA's long-term performance, as the token remains down approximately 88% from its all-time high near $3 reached in 2021.
In a related development, Cardano founder Charles Hoskinson publicly denied long-standing rumors that he sold his ADA holdings near the 2021 peak. Responding to a social media comment accusing him of "dumping" ADA at $3, Hoskinson stated, "I never sold into the move," and dismissed the allegations as fabricated noise. His comments came alongside a reflection on a "long, hard year" and optimism for 2026.
Analysts note that for ADA to signal a genuine recovery, it must first reclaim and hold the $0.38-$0.40 resistance zone. A sustained move above $0.50 is viewed as critical for shifting market sentiment, potentially forcing short covering and attracting sidelined buyers.
