- ADA volume rises
- Cardano sees minor price dip
Coinglass data has noted that trading of Cardano derivatives is up by almost 40% in the last 24 hours, to over $1.85 billion. Such a rise in volume seems to indicate that more people are becoming interested in ADA, possibly traders and large institutions.
ADA volume rises
Open interest, which shows the number of unsettled contracts, has declined slightly to $851 million, a drop of about 10.31% in the last 24 hours. This could be because some traders took profits on their trades.
At the same time, ADA options trading has almost vanished, dropping by 92.94% to $6,590 in volume. With options being used for short-term strategies, this could reveal that investors are paying less attention to long-term risks.
Currently, the long/short ratio for Cardano’s native token is 0.8804, so there are more short positions than long ones on exchanges. Yet, this ratio on Binance stands out, with 2.6887 longs for every short placed, suggesting more traders think the price will go up.
2.5984 is the long/short bias on OKX. It reflects that a number of traders are prepared to take risks by buying.
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Liquidations, which take place when there are not enough funds to keep a trade open, are also happening frequently. Yesterday, the liquidation of ADA positions saw $8.4 million in losses, with the bulk ($8.34 million) being attributed to long trades.
Shorter time frames show similar patterns: $1.48 million in liquidations over 12 hours, $1.23 million over 4 hours, and smaller amounts in hourly intervals.
Cardano sees minor price dip
Current CoinMarketCap data shows that the tenth-largest cryptocurrency by market cap is currently trading at $0.7059 after a 3.57% drop in the last 24 hours. The drop in price has not stopped this digital currency from remaining one of the major assets in the cryptocurrency market, with an overall evaluation of $24.94 billion.
The asset still maintains a ratings score of 75%, showing investors are confident in it despite market changes. After briefly rising to $0.7388, ADA declined to be close to $0.705.
The key level to watch is $0.70. If ADA’s price drops below it, it might signal further downside.
Source: CoinMarketCap
Cardano’s long-term success depends on its roadmap and how ADA is used in the Decentralized Finance (DeFi) sector and various other blockchain applications. Though the daily price decreases may be troubling, higher trade activity might open the door for new movements.