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According to data from CoinGlass, the trading volume of derivatives on popular cryptocurrency Cardano (ADA) has skyrocketed recently, recording a staggering 31% increase in the last 24 hours. The data reveals a turnover of $457.71 million in Cardano perpetual futures during the period under review.
In addition, trading volume on the spot markets for Cardano has also soared - 20% in 24 hours, with a final figure of $358 million. This brings the total trading volume across all markets for ADA to over $800 million.
Alex DovbnyaConsidering that the total market cap is $13.9 billion, the ratio of turnover to market cap is 5.75%, which is a fairly normal level of engagement and nothing out of the ordinary.
Key support for ADA
However, it is still 20%, and even 30% higher than the day before, and there is a reason for that. Obviously, the increased activity on Cardano is due to the fact that the price of ADA has reached a major support level at $0.38.
Since the beginning of the week, the price of the Cardano token has lost about 5%, with the most pain coming yesterday. As a result, ADA reached an important support level, where its price became more attractive for rational traders.
Tomiwabold OlajideNow everything depends on whether Cardano will stay above this level or fall below it. For now, $0.38 acts as support, but once breached it can turn into resistance, and breaking above it will be a tough challenge.
However, the same goes for a move below it, so ADA bulls have little to worry about at the moment.
Arman Shirinyan
Dan Burgin
Alex Dovbnya