According to data from CoinGlass, derivatives trading volume for Cardano’s ADA token has surged by an impressive 83%, reaching a total of $1.61 billion. This substantial increase in trading activity reflects a heightened interest among participants in the cryptocurrency market towards ADA.
Despite the uptick in trading volume, not all recent market movements have favored ADA holders. Over the past 24 hours, a notable $4.79 million worth of open positions in ADA have been liquidated. Surprisingly, the majority of these liquidations, totaling $4.55 million, were long positions, indicating a flurry of buying activity. Only a small fraction, amounting to $244,490, represented short positions.
Amid a volatile period for ADA’s price performance, there has been a surge in trading activity. Throughout the week, the price of the Cardano token witnessed a significant decline, dropping by over 9%. This decline manifested as a prominent red candle on the charts, pushing ADA quotes down to the critical $0.62 mark. Notably, this level holds substantial significance for the token, having functioned as a key resistance zone for several months.
Despite these recent setbacks, buyers have shown resilience in defending this crucial support level, indicating strong interest in ADA purchases. Should Cardano manage to sustain its position above this level, it could greatly enhance the cryptocurrency’s prospects for future growth.
However, there remains uncertainty regarding ADA’s immediate trajectory, with investors preparing for potential developments in the days ahead.