Cardano (ADA) has experienced a remarkable surge in trading volume, with derivatives activity skyrocketing by 31% in the last 24 hours, according to data from CoinGlass. This impressive increase brought the turnover in Cardano perpetual futures to an astounding $457.71 million during this period.
Additionally, trading volume on the spot markets for Cardano has also seen a substantial rise, jumping 20% in the past 24 hours. The final figure for spot market activity reached $358 million. Consequently, the combined trading volume across all markets for ADA exceeded $800 million.
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Engagement Levels Remain Normal
With a total market cap of $13.9 billion, the ratio of turnover to market cap stands at 5.75%. This level of engagement is fairly typical and does not indicate any unusual activity. Nonetheless, the recent increase in trading volume is noteworthy. It represents a significant rise of 20% to 30% compared to the previous day.
ADA to USD Source: CoinMarketCap
The surge in Cardano’s trading activity coincides with the ADA price reaching a critical support level at $0.38. Since the beginning of the week, ADA has lost about 5% of its value, with the most significant drop occurring yesterday. This decline brought ADA to an important support level, making its price more attractive to rational traders.
Future Outlook
Now, the future direction of Cardano’s price depends on whether it will maintain its position above this support level or fall below it.
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For the moment, $0.38 acts as a support level. If breached, it could turn into a resistance level, presenting a significant challenge for ADA to break above again. Conversely, if ADA drops below this level, it will pose a tough challenge for the bulls. While Cardano’s trading volume has surged, its future remains uncertain.
Traders are closely watching the $0.38 support level, as it will likely determine the next major move for ADA. For now, ADA bulls have little to worry about as the price holds steady at this crucial support.
