New reports have emerged revealing that Cardano (ADA) experienced a significant surge of 54 percent in its trading volume within a 24-hour period. However, analysts are skeptical about the reason behind this sharp increase, suggesting that it may be due to selling pressure rather than buying interest.
Cardano (ADA) has made a remarkable turnaround, propelling its derivative and spot market to a staggering $1 billion after witnessing a surge of 54 percent in trading volume. This surge accounts for 5.88% of the total market cap, which currently stands at $18,109,521,029. Over the past 24 hours, ADA has seen a 4.3% increase, adding to its weekly run of 4%, and is currently trading at $0.510835.
The sudden surge in trading volume has prompted analysts to examine ADA’s price behavior over the past few months. They have observed that ADA experienced a continuous decline since mid-December until this recent rally. In the current cycle, there is no apparent support level, indicating a potential decline to the $0.38 price range. This downward movement could result in a 22% decrease in value.
Interestingly, the significant surge in trading volume has caught many by surprise, as the necessary metrics do not support such a movement. Some analysts attribute this surge to increased selling activities rather than a positive change in buying interest among Cardano investors and traders.
It is worth noting that this current rally has affected almost the entire crypto sector, with Bitcoin experiencing a 3.6% surge in the last 24 hours. Solana has also seen a 5% increase in value during the same period, while other cryptocurrencies like Ethereum, Dogecoin, and Polkadot have also witnessed positive gains.
Analysts have spoken out about Cardano’s use cases and long-term bullish potential. Cheeky Crypto, among other analysts and influencers, believes that Cardano has various relevant use cases that can drive its price. He also acknowledges that the project has rebuilt confidence over the years by prioritizing technology that secures transactions. Cardano’s efforts to provide financial services to the 1.7 billion unbanked individuals worldwide have been highlighted as a significant factor.
Furthermore, Cardano has improved transaction throughput through the use of a layer-two scaling solution called Hydra. The Hydra team has recently begun its yearly roadmapping sessions, with plans to release a breaking API change to eliminate the JSON encoding of transactions.
In its weekly development report on February 2, Cardano revealed that 157 projects have been launched on the network, with 1322 projects currently in development. The network has recorded 83.2 million transactions thus far. The report also mentioned Cardano’s education team’s collaboration with the Africa Blockchain Center (ABC) to initiate a Cardano developer training course. Meanwhile, the Mithril team is working on a new data type to certify Cardano transactions within its network.
They have successfully completed the signature of the transactions set and implemented the aggregator route, responsible for generating proofs of membership for a list of Cardano transactions. Additionally, they have finalized the manual workflow for testing the NPM client package in the CI and improved the resilience of computing the list of immutable files in a Cardano node database. The team has also expanded the coverage of end-to-end tests in the CI to accommodate multiple versions of the Cardano node and various hard fork scenarios.
Recommended for you:
– Bitcoin Buying Guide
– Tutorial on Bitcoin Wallets
– Check Bitcoin Price in the Last 24 Hours
– More Bitcoin News
– What is Bitcoin?