Cardano Skyrockets 31% in Volume as ADA Price Finds Vital Support

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. 

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Considering 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.

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Now 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.