Cardano (ADA) has dropped by over 8% in the last 24 hours as the price continues on a downward path. This development has led to severe liquidation within the period as a total of $8.3 million worth of ADA was wiped out. This takeout comes amid the 29% rally the coin recorded in July and a historically negative August.

Long traders crushed as Cardano ADA price plunges over 8%

According to CoinGlass data, long position traders suffered the bulk of the liquidations. Notably, investors betting on a bullish outlook for Cardano suffered $8.12 million in losses when the price plunged on the crypto market.

As of press time, Cardano is changing hands at $0.7217, reflecting an 8.05% decrease. The asset traded at a peak of $0.7848 in earlier sessions, likely fueling anticipation of its potential to surge toward the psychological $1 level.

However, the broader cryptocurrency market crashed by 3.95% and impacted most assets in the sector. Bitcoin has also suffered a 3.03% decline, while the leading altcoin, Ethereum, has dipped by 6.43% within the same 24-hour time frame.

The plunge has sparked anxiety among investors as they keenly monitor price movement, concerned about the $0.70 support level. Cardano had previously broken the $0.735 support and could do the same with the $0.70 level if ecosystem bulls fail to act.

Short-position investors also recorded mild losses, which stood at $182,310, indicating that most market participants were anticipating upward price movement.

Starstream development could boost long-term price outlook

Cardano has the potential to rebound as the Relative Strength Index (RSI) is at 31.57, suggesting the asset is leaning into oversold territory. A recovery is possible, particularly with the high bullish sentiments among Cardano traders.

If the broader market experiences a recovery, Cardano looks poised to rise with it.

Additionally, developers in the Cardano ecosystem are working on Starstream. The project could allow for scalable interactions on blockchains as users generate zk-proofs for smart contracts directly in web browsers.

The move could support the price outlook as Cardano becomes more appealing to users in the crypto space.