Cardano (ADA) on Verge of Major Price Breakout, Skyrockets 33% in Volume
08/22/2024 23:03
Cardano explodes 33% in volume as major price breakout nears for ADA token
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The native token of the Cardano blockchain, ADA, saw an increase in trading activity today, according to CoinGlass data, as the volume of perpetual futures for ADA spiked today, at one point by 33%. After the spike, turnover for the Cardano token in this particular market peaked at over $450 million.
Meanwhile, the situation on the spot market does not differ much. According to data from CoinMarketCap, spot volume for ADA has increased by 23.85% in the last 24 hours, reaching almost $350 million.
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Combining the figures from both the futures and spot markets, the total volume for the Cardano token in this period is approximately $800 million. This means that the turnover to market cap ratio for ADA is 5.9%, which indicates a rather normal and not exaggerated level of trading activity.
Tug-of-Cardano
However, the spike in ADA trading means that market participants are paying more attention and volatility is increasing. The reason for the increase is probably the price performance of the Cardano token.
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Thus, in the last 24 hours, the price of ADA has shown a solid 8.3% gain on its quotes, but what is more important is that it has reached a key resistance level at $0.38.
This price point has been important since 2018 because, after securing a listing on Binance and rising over 60% in the next two weeks, this very level marked the end of that rally. After that, it established itself as a key level to watch for ADA's price.
Once a breakout above it happens, the Cardano token may see another rally with the level turning into support. If not, then resistance and bearish bias will prevail.