- Cardano trading volume surged 40.66% to $1.85 billion amid growing bullish sentiment, despite a slight price dip to around $0.70.
- The increased activity signals strong trader interest and potential for new price movements as investors watch key support levels closely.
Cardano (ADA) has seen a striking 40.66% surge in trading volume over the past 24 hours, reaching an impressive $1.85 billion, according to Coinglass data. This notable uptick signals growing interest from traders and possibly institutional players eager to capitalize on ADA’s market movements. Such a surge often precedes notable price action, hinting at increased market activity around this popular blockchain token.
Trading Activity and Open Interest Paint a Mixed Picture
While the volume is surging, open interest—the value of unsettled contracts—has slightly declined by 10.31% to $851 million. This suggests that some traders might be locking in profits from recent positions rather than opening new ones. Meanwhile, ADA options trading has plunged by nearly 93%, down to just $6,590 in volume, indicating less focus on long-term hedging strategies and potentially less concern over future volatility.
Interestingly, the long/short ratio for ADA shows more shorts overall (0.8804), but this shifts dramatically on Binance, where there are 2.69 long positions for every short. Similarly, on OKX, the long bias stands at 2.60, reflecting a strong willingness among traders on major exchanges to bet on ADA’s price appreciation.
Liquidations Highlight Volatility Despite Price Dip
Despite this bullish trading activity, Cardano experienced a minor price drop of 3.57%, trading at around $0.7059. The total market cap remains robust at nearly $25 billion, securing ADA’s place as the tenth-largest cryptocurrency. Notably, recent liquidations have been heavy, with $8.4 million wiped out from ADA positions in just 24 hours, predominantly from long positions—signaling that volatility is causing some traders to get stopped out.
Shorter time frames confirm the persistent liquidations: $1.48 million in the last 12 hours and $1.23 million over 4 hours, underscoring ongoing market turbulence.
What’s Next for Cardano?
The $0.70 price level emerges as a critical support point. Should ADA dip below this threshold, the potential for further downside increases. However, the overall 75% ratings score shows investor confidence remains intact.
Long-term success for Cardano hinges on the execution of its ambitious roadmap and increased adoption in decentralized finance (DeFi) and blockchain applications. While the short-term price action may cause concern for some, the surge in trading volume suggests heightened market interest, which could pave the way for fresh momentum in ADA’s price and ecosystem growth.
