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Cardano is showing an increase in volume, but if you are a bull you should not see this kind of spike. Trading volume increased by about 40% in the last day, but the price dropped precipitously toward the $0.10 area. Rising volume and falling price together indicate aggressive selling rather than sound accumulation.
Cardano under pressure
Additionally, the supporting data from several platforms presents the same image: liquidity is leaving ADA rather than entering it. The graph depicts a market that is constantly under pressure. The 50-day, 100-day and 200-day moving averages have all rejected ADA, and since the breakdown in October, the trend has been extremely negative. The price was pushed back toward a support zone earlier this month by the recent selling.
Sellers probably still have room to push further before exhaustion sets in because the RSI dipping near 34 is not yet in extreme oversold territory. The weakness is strengthened by the liquidation and futures metrics. ADA longs have lost almost $4 million in the past day, while shorts have only lost about $383,000.
Netflow data
In the meantime, futures inflow/outflow data reveals consistent net outflows over several intervals; instead of placing bets on a reversal traders are stepping away, closing positions and lowering exposure.
Spot flows are comparable. ADA volume exceeded $534 million on Binance alone, but net flows were skewed toward outflows, indicating that market players are not accumulating. Major exchanges' long/short ratios appear high primarily because open interest fell more quickly on the short side rather than because there is a lot of actual buying demand. Investors should now anticipate more prudence rather than an immediate recovery.
The increase in volume seems to be caused more by forced liquidations and panic exits than by strategic positioning, and ADA has not yet reached a definite bottom. The next significant support is located between $0.48 and $0.50.
A decline toward the mid-$0.40s is likely if that level breaks, particularly if the market's overall weakness persists. Though momentum is clearly against it, Cardano is not dead. This volume spike is a bearish warning, not a bullish one, until inflows improve and liquidations level off.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team