In a remarkable turn of events within the cryptocurrency market, Cardano (ADA) experiences a surge in trading volume, propelling its derivative and spot market to a staggering $1 billion. The surge, constituting 5.88% of the total market cap, comes amidst a broader rally in the crypto sector, with notable gains recorded across various cryptocurrencies.
Over the past 24 hours, Cardano has witnessed a whopping 54% surge in trading volume, alongside a 4.3% increase in its price, now trading at $0.510835. This surge marks a significant turnaround for ADA, which had been experiencing a continuous decline since mid-December until the recent mini rally.
A closer look at ADA’s price behavior reveals a continuous decline since mid-December, culminating in the current mini-rally. Analysts are wary, pointing out the absence of visible support levels in the current cycle, hinting at a potential decline into the $0.38 price zone. This downward movement could wipe off 22% of its current value.
The surge in trading volume, though impressive, raises eyebrows among analysts. Contrary to expectations, some suggest that this surge is more indicative of increased selling activities rather than a positive shift in buying interest among Cardano investors and traders.
Notably, Cardano’s surge is part of a broader trend across the crypto sector. Bitcoin has experienced a 3.6% surge in the last 24 hours, while Solana has added 5% to its value. Other major players like Ethereum, Dogecoin, and Polkadot are also making positive strides.
Analysts and influencers, including Cheeky Crypto, have expressed confidence in Cardano’s long-term bullish potential. According to him, Cardano boasts several relevant use cases that could drive its price higher. The project has worked diligently to rebuild confidence, emphasizing technology that secures transactions. Cardano’s ambitious goal of offering financial services to 1.7 billion unbanked individuals globally is also highlighted.
Cheeky Crypto points to Cardano’s use of a layer-two scaling solution called Hydra, which has significantly improved transaction throughput. The Hydra team is actively engaged in yearly roadmapping sessions, aiming to release a breaking API change to enhance transaction encoding.
In its weekly development report on February 2, Cardano disclosed that 157 projects have been launched on the network, with 1322 projects currently in development. An impressive 83.2 million transactions have been recorded on the network. Furthermore, Cardano’s education team is gearing up to launch a developer training course in collaboration with the Africa Blockchain Center (ABC). Meanwhile, the Mithril team is working on a new data type to certify Cardano transactions within its network.
Analysts examining Cardano’s price behavior over the past months note a lack of visible support levels in the current cycle, indicating a potential decline to the $0.38 price zone, which could entail a 22% decrease in its value.
However, the surge in trading volume has left analysts surprised, as the required metrics do not entirely support such a substantial move. Some analysts attribute the surge to increasing selling activities rather than a positive change in buying interest among Cardano investors and traders.
Notably, Cardano’s surge is part of a broader rally in the crypto sector, with Bitcoin, Solana, Ethereum, Dogecoin, and Polkadot all making significant gains within the same period.
Analysts and influencers, including Cheeky Crypto, affirm Cardano’s long-term bullish potential, citing its relevant use cases and technological advancements. Cardano has focused on offering financial services to approximately 1.7 billion unbanked individuals globally, rebuilding confidence in its technology over the years.
One significant technological advancement mentioned is Cardano’s layer-two scaling solution, Hydra, which has improved transaction throughput. The Hydra team’s recent roadmapping sessions aim to introduce a breaking API change to enhance transaction efficiency.
In its latest development report, Cardano reveals that 157 projects have been launched on the network, with 1322 projects currently in development. The network has recorded 83.2 million transactions, highlighting its growing adoption and activity.
Furthermore, Cardano’s education team plans to launch a developer training course in collaboration with the Africa Blockchain Center (ABC), aiming to foster blockchain development skills across the continent. Additionally, the Mithril team is working on a new data type to certify Cardano transactions within its network, further enhancing its capabilities.
As Cardano continues to make strides in technological innovation and adoption, analysts remain optimistic about its long-term prospects in the ever-evolving cryptocurrency landscape.
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