Data from CoinGlass has revealed a staggering 83% surge in derivatives trading volume for the widely popular Cardano token (ADA), reaching an impressive $1.61 billion. This notable uptick in ADA trading activity signals a heightened interest among cryptocurrency market participants in this particular token.
Despite the increased trading volume, not all market movements have been beneficial for ADA holders. Within the past 24 hours alone, over $4.79 million worth of open positions in ADA have been liquidated. Surprisingly, a significant majority of these liquidations, totaling $4.55 million, were long positions, indicating a flurry of buying activity. Only a fraction, amounting to $244,490, represented short positions.
This surge in trading activity comes amid a turbulent period for ADA's price performance. Over the course of the week, the price of the Cardano token experienced a notable decline, plummeting by more than 9%. The price dip painted a bold red candle on the charts, pushing ADA quotes down to the critical $0.62 mark. This level holds considerable significance for the token, having served as a key resistance zone for several months.
Despite recent setbacks, buyers have demonstrated resilience in defending this crucial support level, indicating strong interest in ADA purchases. If Cardano manages to maintain its position above this level, it could significantly bolster the cryptocurrency's prospects for future growth.
However, uncertainty looms over ADA's immediate trajectory, with investors bracing themselves for what lies ahead in the coming days.