TLDR
- Bitmex records a historic 77,104% increase in ADA derivative contract activity.
- Traded volume reached $129.12 million in just 24 hours.
- Despite the frenzy, the spot price struggles to maintain the critical $0.34 support.
Market operators were left stunned this Friday as Cardano futures activity experienced an unprecedented explosion. While most digital assets are showing reduced volumes due to the holiday season, CoinGlass data reveals a staggering 77,104.49% increase on Bitmex.
This surprising and unusual capital flow, totaling more than $129 million, suggests that market forces are preparing for a significant move beneath the surface. At the time of writing, ADA is trading around $0.355, showing a slight daily recovery, although it has accumulated weekly losses of over 3%. After weeks of a downward trend that has frustrated even the most optimistic investors, the market appears to have reached an inflection point.
According to analysis by 10x Research, technical signals are converging in an unusual way, indicating that risk appetite is being drastically reassessed through Cardano futures.
Key Technical Levels and Potential Scenarios for ADA
Technically speaking, the road ahead is not without obstacles. Since its December high of $0.484, Cardano has only retreated, and “bulls'” attempts to halt the decline were stopped at the $0.38 resistance. Now, bears are attempting to consolidate that level as a psychological barrier to resume the bearish trend.
If selling pressure manages to drag the price below the $0.34 support, the next technical target would be $0.30, with the risk of falling to the October low of $0.27. However, the massive open interest in Cardano futures could act as a catalyst for a counter-movement.
To invalidate the bearish thesis, ADA must overcome the 50-day and 200-day moving averages, located at $0.436 and $0.669, respectively. If the price breaks through these resistances, the asset could launch toward the $0.70 target.
In summary, for now, the frenzy in the derivatives market is keeping investors on high alert for what could be either a massive liquidation or a structural reversal before the year ends.
