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The broader crypto market saw selling in the early Wednesday session on most cryptocurrencies, including Cardano, which is currently trading in red. At press time, ADA was down 3.63% in the last 24 hours to $0.254 and down 14.24% weekly.
In the last 24 hours, a total of $303 million has been reported in liquidation, according to CoinGlass data.
Several factors have weighed on crypto markets, including volatility in tech stocks, with which crypto assets often move in tandem.
Amid the market drop, Cardano has seen a futures volume surge on Bitmex, up 39,366% in the last 24 hours to $120.22 million.
The surge, however did not translate to a rise in volumes across the entire derivatives market. According to CoinGlass data, Cardano's total volume across the derivatives market dropped by 7.97% in the last 24 hours to $709.08 million.
Cardano tests $0.25
The crypto market largely traded in red as investors awaited the release of the delayed January jobs report. Investors are anticipating the nonfarm payrolls report for January on Wednesday, set to be published by the Bureau of Labor Statistics at 8:30 a.m. ET.
Cardano is extending its drop amid continued profit-taking after reaching $0.2841 on Feb. 6.
Cardano is currently testing the support near $0.25, reaching an intraday low of $0.252 on Wednesday. If the ADA price turns downward from its current level, ADA might aim for the next support at $0.20.
On the other hand, a break above $0.30 might cause ADA to stay in its price channel for some time. Further momentum might see ADA target $0.50 next.
Investors are also looking ahead to the consumer price index, which is due out on Friday and is a key inflation gauge.
Dan Burgin
U.Today Editorial Team