According to U.Today, the trading volume of derivatives on the popular cryptocurrency Cardano (ADA) has seen a significant increase, recording a 31% rise in the last 24 hours. Data from CoinGlass reveals a turnover of $457.71 million in Cardano perpetual futures during this period. Additionally, the spot market trading volume for Cardano has also surged by 20% in the same timeframe, reaching $358 million. This brings the total trading volume across all markets for ADA to over $800 million.
Considering the total market cap of Cardano, which stands at $13.9 billion, the ratio of turnover to market cap is 5.75%. This level of engagement is considered fairly normal and not out of the ordinary. However, the recent increase in trading activity, which is 20% to 30% higher than the previous day, can be attributed to the price of ADA reaching a major support level at $0.38.
Since the beginning of the week, the price of the Cardano token has declined by about 5%, with the most significant drop occurring yesterday. As a result, ADA reached an important support level, making its price more attractive to rational traders. The key question now is whether Cardano will remain above this support level or fall below it. Currently, $0.38 acts as support, but if breached, it could turn into resistance, posing a challenge for ADA to break above it. Conversely, a move below this level could also be difficult, so ADA bulls have little to worry about at the moment.
