Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, is back in the spotlight after nearly one billion ADA were traded in a single day. According to CoinMarketCap data, 996,010,000 ADA changed hands within 24 hours, reflecting a sharp increase in activity and signaling a potential turning point for the digital asset after a week of mostly downward movement. The sudden spike in volume coincides with a modest price recovery, as ADA rose nearly 4% to trade at $0.703 at the time of writing.

This rebound is significant given ADA’s recent performance, where it spent five out of the last six trading days in the red. The cryptocurrency touched lows of $0.666 midweek before bouncing back to an intraday high of $0.709 early Thursday. This movement marks ADA’s first meaningful uptick in over a week and hints at renewed buying interest across the market.

Currently, ADA is navigating a crucial technical zone, trading between its 50-day and 200-day simple moving averages. The 50-day SMA, located around $0.674, has now become a short-term support level, while the 200-day SMA near $0.772 stands as a key resistance point. This range is widely viewed by analysts as a battleground for bulls and bears, with a decisive break in either direction likely to determine ADA’s next major move. If the bulls succeed in pushing the price above the 200-day average, ADA could aim for the $1 mark in the coming weeks. On the other hand, a failure to hold current levels might result in a pullback to $0.60 or even $0.51.

The recent spike in Cardano’s trading activity also aligns with a broader shift in the cryptocurrency market, which is showing signs of recovery following recent economic data from the United States. Reports indicate that the U.S. economy entered a phase of contraction in the first quarter, while inflation remained flat in March. These developments have increased expectations that the Federal Reserve may begin easing monetary policy later this year, despite no immediate rate cuts being anticipated at the next meeting scheduled for May 6–7.

Adding to the speculation, the Labor Department reported that initial jobless claims rose to 241,000 last week, surpassing the 225,000 estimate by economists. This rise in unemployment claims adds further pressure on the Fed to consider rate cuts in the near future, as markets now expect up to four reductions by year-end. A looser monetary policy environment typically benefits risk assets like cryptocurrencies, as it boosts liquidity and investor appetite for higher-yielding alternatives.

Although ADA’s recent price increase and volume spike are promising, traders are cautious about reading too much into a single day’s performance. The sharp rise in volume may reflect strategic repositioning by larger investors rather than a broader trend driven by retail participation. For the recovery to continue, consistent buying pressure and strong closes above key resistance levels will be required in the days ahead.

Cardano continues to remain a vital part of the crypto ecosystem due to its methodical, research-based approach to blockchain development. While it has faced criticism over its slower rollout of new features, ongoing advancements in scalability and interoperability suggest that ADA could still have long-term upside potential. For now, the market will be watching closely to see if this surge in activity is the start of a sustained rally or simply a short-lived reaction to changing macroeconomic conditions.