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Cardano (ADA) has seen a massive upsurge in its trading volume within the last 24 hours. CoinMarketCap data shows that Cardano’s volume spiked by 72.89% to $953.21 million within this time frame as the asset showed signs of regaining bullish momentum.
DZ Bank listing fuels Cardano demand
Notably, Cardano has been having challenges as the coin traded at a low level of $0.3323, sparking concerns of its future outlook. In the last seven days, however, ADA has traded above $0.42, with the price steadily inching higher daily.
The current massive spike in volume is likely supported by the addition of Cardano to a traditional banking trading platform. German banking giant DZ Bank recently added ADA to its regulated platform, "meinKrypto," offering the product to its user base.
The addition of Cardano by a mainstream bank signals regulatory validation and could boost retail demand for ADA.
Additionally, this might reduce the volatility that has characterized the performance of Cardano in the last couple of weeks. If DZ Bank records a high adoption rate, Cardano could begin to enjoy a level of stability.
Institutional interest in Cardano also caused a spike in its open interest — exactly seven days ago. The uptick came as speculation of possible approval for a Grayscale spot Cardano exchange-traded fund (ETF) hit the community.
With Cardano’s volume up, the price has gained by 6.74% to $0.4185 within this time frame. Cardano had, in earlier market trading, soared to a daily peak of $0.4267 before posing a slight correction.
Price climbs as Bitcoin boosts altcoin sentiment
It is worth pointing out that Bitcoin has also contributed to the bullish outlook that Cardano currently enjoys. In the broader crypto space, Bitcoin surged by over 4.5% to hit above $95,000.
This uptick in the price of the leading crypto asset had a positive impact on altcoins, including ADA.
Cardano might continue on this bullish trajectory if investors hold and do not embark on profit-taking moves. Already, the Relative Strength Index (RSI) of ADA is close to 70, signaling potential short-term pullback risk.
As U.Today reported, Cardano has been recording a steady increase in open interest.
This open interest breakout came after the coin experienced a volume drop but no liquidations. Now, momentum has shifted in the ecosystem. Whether this can hold off short-term traders remains something to watch out for in the coming days.
Godfrey Benjamin
Gamza Khanzadaev
Yuri Molchan
Tomiwabold Olajide
Arman Shirinyan