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Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, has seen a significant decline in trading volume as the broader market faces uncertainty.
According to CoinMarketCap data, Cardano's trading volume has declined 60% in the last 24 hours to $1.13 billion. Trading volumes, more often than not, reflect traders' positioning; if this is the scenario, it might imply traders are approaching a wait-and-see approach amid the recent volatility on the market before making major moves.
At the time of writing, ADA was trading down 4.14% in the last 24 hours to $0.776, extending its drop into the fourth consecutive day.
Tomiwabold OlajideCardano started declining from highs of $0.989 in Thursday's trading session as hopes of its inclusion in a strategic reserve faded. ADA had reached highs of $1.17 on March 3 following the initial announcement of a strategic digital asset reserve.
Cardano faces sell-off
Last Sunday, ADA jumped by up to 72% due to the initial announcement of a crypto strategic reserve. However, uncertainty about the reserve's plan caused Cardano to fall, undoing gains in Monday's session. Other digital tokens initially highlighted to be included in the reserve — Ethereum, XRP and Solana — also saw declines.
Denys SerhiichukThe sell-off worsened on Friday as the signing of a long-awaited order creating a strategic Bitcoin reserve and an additional stockpile of other digital assets and the first-ever U.S. crypto summit failed to stir bulls.
Cardano fell, losing the daily SMA 50 at $0.835 in the process, and has since traded below this level.
The slump in other risky assets, with stocks failing to retain gains amid recent macroeconomic uncertainties, weighed on cryptocurrencies. The Nasdaq 100 Index fell into a correction.
If today ends in the red, Cardano would mark its fourth day of dropping. A rebound would aim to establish a footing above the daily SMA 50 at $0.828; another possibility is that ADA consolidates between its daily moving averages of 50 and 200, with the latter at $0.687 acting as support in case of further declines.
Dan Burgin
Vladislav Sopov