Cardano’s ADA Plummets 59% in Volume: Traders Adopt a “Wait and See” Approach

by

😱 Oh, Cardano (ADA)! You’re not feeling so hot these days, are you? The ninth-largest cryptocurrency by market capitalization has seen a significant decline in trading volume as the broader market faces uncertainty.

According to CoinMarketCap data, Cardano’s trading volume has declined 60% in the last 24 hours to $1.13 billion. Trading volumes, more often than not, reflect traders’ positioning; if this is the scenario, it might imply traders are approaching a wait-and-see approach amid the recent volatility on the market before making major moves. 💸

At the time of writing, ADA was trading down 4.14% in the last 24 hours to $0.776, extending its drop into the fourth consecutive day. 📉

Cardano started declining from highs of $0.989 in Thursday’s trading session as hopes of its inclusion in a strategic reserve faded. ADA had reached highs of $1.17 on March 3 following the initial announcement of a strategic digital asset reserve. 📈

Cardano faces sell-off

Last Sunday, ADA jumped by up to 72% due to the initial announcement of a crypto strategic reserve. However, uncertainty about the reserve’s plan caused Cardano to fall, undoing gains in Monday’s session. Other digital tokens initially highlighted to be included in the reserve — Ethereum, XRP and Solana — also saw declines. 😲

The sell-off worsened on Friday as the signing of a long-awaited order creating a strategic Bitcoin reserve and an additional stockpile of other digital assets and the first-ever U.S. crypto summit failed to stir bulls.

Cardano fell, losing the daily SMA 50 at $0.835 in the process, and has since traded below this level. 📉

The slump in other risky assets, with stocks failing to retain gains amid recent macroeconomic uncertainties, weighed on cryptocurrencies. The Nasdaq 100 Index fell into a correction. 📉

If today ends in the red, Cardano would mark its fourth day of dropping. A rebound would aim to establish a footing above the daily SMA 50 at $0.828; another possibility is that ADA consolidates between its daily moving averages of 50 and 200, with the latter at $0.687 acting as support in case of further declines. 📈

Read More

2025-03-09 18:22