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Cardano (ADA), the eighth largest cryptocurrency by market cap, has seen a 1,595% surge in trading volume, coupled with a 73% price increase in just 24 hours. According to CoinMarketCap data, Cardano's trading volume reached $10.34 billion, marking a 1,702% surge in the last 24 hours.
The cryptocurrency market roared into March with a rally, recouping some losses from its worst month since 2022. On Sunday, the U.S. unveiled plans for a strategic crypto reserve, further boosting market sentiment.
Tomiwabold OlajideThe announcement that XRP, SOL and ADA would be included in a strategic crypto reserve drove the assets to skyrocket. The inclusion of XRP and ADA was unexpected, causing both cryptocurrencies to see massive rises on Sunday, outperforming most digital assets. Bitcoin and Ethereum would also be included in the reserve, helping them recover from last month's sharp declines.
What's happening?
ADA sharply skyrocketed on the back of the positive news of its inclusion in a strategic reserve, jumping from lows of $0.644 to highs of $1.19, posting a massive green candlestick in Sunday's session. Traders jumped in to make profits from the recent market volatility, triggering a 1,700% surge in ADA trading volumes.
Godfrey BenjaminAt the time of writing, ADA had slightly erased its gains, dropping to lows of $0.926 in the early Monday session. At the time of writing, ADA was up 44% in the last 24 hours to $0.955, having briefly reached intraday highs of $1.19.
With ADA briefly surpassing $1, bullish sentiment is at its highest in weeks. If buying pressure continues, Cardano could test resistance at $1.20 or $1.30.
According to market observers, if expectations about the strategic reserve do not match reality, markets might potentially retreat.
Furthermore, macroeconomic concerns remain an overhang that might force cryptocurrency prices to fall again if equities do the same. In the event of a decline, the daily moving averages of 50 and 200 at $0.85 and $0.664 may provide support.
Dan Burgin
Vladislav Sopov