Cardano (ADA) has experienced a remarkable surge in its 24-hour trading volume, increasing by 54 percent. However, analysts are questioning the cause of this sharp surge, attributing it to selling pressure rather than buying interest.
ADA has successfully driven its derivative and spot market to $1 billion after recording a massive surge in trading volume. This surge represents 5.88% of the total market cap, which amounts to $18,109,521,029. In the past 24 hours, ADA has seen a 4.3% surge and a 4% weekly increase, with a trading price of $0.510835.
The significant surge in trading volume has prompted an examination of ADA’s price behavior in recent months. Analysts note that ADA has been experiencing a continuous decline since mid-December, with no visible support level in the current cycle. This indicates a potential decline to the $0.38 price zone, which could result in a 22% loss in value.
Interestingly, the surge in trading volume has come as a surprise, as the necessary metrics do not support such a move. Some analysts attribute this increase to the growing selling activities rather than a positive change in buying interest among Cardano investors and traders.
It is worth noting that the current surge has affected the entire crypto sector, with Bitcoin experiencing a 3.6% increase in the last 24 hours. Solana has also seen a 5% increase, while Ethereum, Dogecoin, Polkadot, and others have made positive gains.
Several analysts and influencers, including Cheeky Crypto, have confirmed Cardano’s long-term bullish potential. They believe that Cardano has various use cases that can drive its price, highlighting the project’s efforts to offer financial services to the unbanked population worldwide, numbering about 1.7 billion individuals.
Additionally, Cardano has improved its transaction throughput through the use of a layer-two scaling solution called Hydra. The Hydra team is currently working on releasing a breaking API change to enhance transaction encoding.
Cardano’s weekly development report states that 157 projects have been launched on the network, with 1322 projects under development. The network has recorded 83.2 million transactions. Furthermore, Cardano’s education team plans to collaborate with the Africa Blockchain Center to offer a Cardano developer training course. The Mithril team is also working on a new data type to certify Cardano transactions within its network.
They have completed the signature of the transactions set and implemented the aggregator route, which generates proofs of membership for a list of Cardano transactions. Additionally, they have improved the resilience of computing the list of immutable files in a Cardano node database and expanded the coverage of end-to-end tests to accommodate multiple versions of the Cardano node and various hard fork scenarios.