The highly-liked Cardano coin (ADA) had a startling 83% increase in derivatives trading volume, hitting an astounding $1.61 billion, according to data from CoinGlass. The observed increase in ADA trading activity suggests that players in the cryptocurrency market are more interested in this specific coin.
Even with the higher trading volume, investors of ADA have not always benefited from market moves. Over $4.79 million worth of open positions at ADA have been liquidated in the last 24 hours alone. Remarkably, a sizable portion of these $4.55 million liquidations were long positions, suggesting a frenzy of purchasing activity. Just $244,490, or a small portion, were short positions.
The recent spike in trading activity coincides with a period of volatility in ADA’s price performance. The price of the Cardano token fell significantly throughout the course of the week, falling by almost 9%. The drop in price caused ADA quotations to drop to the crucial $0.62 level and formed a strong red candle on the charts. After acting as a crucial resistance zone for several months, this level is quite significant for the coin.
Customers have shown tenacity in maintaining this critical support level in spite of recent setbacks, demonstrating a significant desire in purchasing ADAs. Cardano might greatly improve the cryptocurrency’s chances of future development if it can hold its current position above this one.
But there is a cloud over ADA’s short-term future, and investors are preparing for what may happen in the next few days.
