TL;DR
- The Cardano (ADA) market experiences a 170% increase in derivatives trading volume in just 24 hours, surpassing $500 million.
- ADA price reaches $0.49, a level unseen in 17 days, driven by fear of missing out (FOMO) among investors.
- Whale activity increases, indicating a possible bullish trend, while active address data shows growing demand for ADA.
The Cardano (ADA) market has seen a significant increase in activity and trading volume in the last 24 hours, attracting attention among investors. According to CoinGlass data, ADA derivatives trading volume has surged by 170%, surpassing $500 million in a single day. This has pushed the total trading volume of the token to over $1 billion, including both derivatives and spot markets on various exchanges.
At the same time, ADA price experienced a surge, increasing by over 6% since the opening of the last daily candle and reaching $0.49, a level not seen in the past 17 days. The increase could be attributed to fear of missing out (FOMO) among investors, as the Cardano price has been relatively stable in recent weeks, even sparking jokes about ADA being a “stablecoin” at $0.45.
On the other hand, there has been an increase in Cardano whale activity, indicated by the rise in frequency of fluctuations. Some holders are accumulating ADA at an unprecedented rate, which could be interpreted as bullish sentiment among investors.
Additionally, active address and circulation data show a growing trend, indicating increased activity, acceptance, and demand for ADA. The uptick in activity could drive a positive momentum for the Cardano price, allowing it to surpass the resistance level at $0.44 and potentially reach $0.50 in the near future.
Cardano and the Crypto Market Hit by US Data
However, at the time of writing this article, the market was shaken by strong volatility. Following Bitcoin’s fall from touching $71,900 to dropping to $68,900, a 2.75% loss that was followed by the rest of the cryptocurrencies. ADA retraced and fell by 3%, returning to $0.444. Its current volume is almost $866 million, showing an increase of nearly 245%.
The downturn was attributed to US non-farm payroll data, which exceeded expectations, indicating that the labor market coped much better with restrictive fiscal policy than analysts had anticipated. This, in turn, reduced the chances of the Federal Reserve lowering interest rates, a crucial factor favoring the flow of capital into assets like cryptocurrencies. For now, we must wait for the storm to pass and see how the market reacts in the short and medium term.
