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Cardano (ADA) is showing rebound potential, as indicated by its surging trading volume. In the past 24 hours, the Cardano trading volume increased by 63%, indicating investors' renewed confidence in the coin.
Rising Cardano market activity
According to CoinMarketCap data, the ADA daily trading volume rose by 63% to $1.59 billion.
On the crypto market, a surge in volume is often interpreted as a sign of increased market activity and investor interest, which could potentially lead to a price rebound.
A 63% increase in trading volume indicates that more ADA coins are being bought and sold in the 24-hour trading period.
Increased trading volume can sometimes precede price movements, as it reflects renewed confidence among traders and investors.
For now, the surging trading volume has yet to reflect in the price of ADA. As of this writing, ADA is trading at $0.5390, down 6.5% over the previous day.
Thus, the recent upgrades to the Cardano network, such as the introduction of new features, might attract more users and investors.
Recently, Cardano developer Input Output announced a major security-boosting upgrade called ‘Ouroboros Phalanx.’ This upgrade is in the final stages of testing, aiming to solve grinding attacks.
Furthermore, Midnight Foundation CTO Sebastien Guillemot confirmed the launch of mining for NIGHT tokens. This token distribution, which is open to anyone with a web browser and internet connection, seems to have increased appeal for the Cardano network.
Is There Hope for ADA Holders?
For those holding ADA, this increase in volume might signal a good time to monitor the market closely, as it could lead to a major price rally. For potential investors, it might indicate an entry point if they believe in the long-term potential of Cardano.
Moreover, the Relative Strength Index (RSI) is showing short-term strength for the ADA coin. Also, the Moving Average Convergence Divergence (MACD) indicator has turned positive, and the price is above the 20-day simple moving average.
ADA could see a breakout at $0.70 if it manages to break above the $0.65 resistance. However, a decisive move below $0.60 might sustain the ongoing weakness and open the door to renewed selling pressure.
Popular onchain analyst Ali Martinez forecasted earlier that Cardano could see a breakout towards $1.50. The analyst based his forecast on a channel pattern that emerged on its 12-hour chart.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team