In a recent development, Cardano (ADA) has witnessed a significant surge in trading activity, particularly in the derivatives market. According to data from CoinGlass, the trading volume for Cardano derivatives skyrocketed by an impressive 31% over the past 24 hours, reaching a turnover of $457.71 million in perpetual futures. This surge in activity comes at a pivotal moment for the cryptocurrency, as its price tests a crucial support level.
Not only has the derivatives market been bustling, but spot trading for Cardano has also seen a notable uptick. The spot market trading volume increased by 20% over the same 24-hour period, amounting to $358 million. Combined, these figures push Cardano’s total trading volume across all markets to over $800 million, highlighting a growing interest in the cryptocurrency.
With a total market capitalization of $13.9 billion, the turnover-to-market-cap ratio for Cardano stands at 5.75%. While this ratio is within the normal range, the recent increase in trading activity—20% to 30% higher than the previous day—indicates heightened market engagement, likely driven by ADA’s recent price movements.
Key Support Level at $0.38
The surge in trading volume coincides with Cardano’s price reaching a significant support level at $0.38. Since the beginning of the week, ADA has seen a 5% decline, with the most substantial drop occurring yesterday. This downturn brought the token to the $0.38 level, a price point that has garnered attention from traders looking to capitalize on potential price movements.
The importance of this support level cannot be overstated. Should ADA manage to hold above $0.38, it could signal a rebound, with the potential to regain lost ground. However, if the price breaks below this level, the support could turn into resistance, creating a challenging environment for bullish traders.
Also Read: Cardano (ADA) On The Verge Of A 98% Rally – $0.765 Target By 2025
As of now, the $0.38 support level appears to be holding, providing some reassurance to ADA bulls. However, the coming days will be crucial in determining the cryptocurrency’s short-term trajectory. A breach below this level could lead to further declines, while maintaining or surpassing this support could trigger renewed buying interest.
In conclusion, the recent surge in trading volume for Cardano, both in the derivatives and spot markets, reflects the market’s keen interest in the cryptocurrency as it navigates a critical support level. Whether ADA will hold the line or falter remains to be seen, but for now, all eyes are on the $0.38 mark.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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