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Cardano Derivatives Volume Spikes 28% — Is ADA Breaking Out From Consolidation Zone?

Last Updated June 5, 2024 12:39 PM
Nikola Lazic
Last Updated June 5, 2024 12:39 PM

Key Takeaways

  • Cardano derivatives trading volume surged by 28.9%.
  • ADA trading maintained despite price consolidation.
  • Open Interest indicates potential upcoming volatility.

According to CoinGlass , trading volumes for Cardano (ADA) derivatives have surged by 28.9% in the last 24 hours, with perpetual futures for the ADA token reaching $362.30 million. 

Additionally, CoinMarketCap reports that ADA’s spot market trading across all exchanges totaled $306.29 million. Consequently, Cardano’s combined trading volume on both spot and derivatives markets amounted to $668 million over the past day.

Meanwhile, ADA’s price has been stuck in a horizontal range between $0.42 and $0.50 from April 14, after a 50% drop. With these things in mind, are we ready to see this consolidation ending on a breakout? 

Cardano Derivatives 

Cardano’s volume rose from May 24, and its price declined, creating a divergence that could, in this case, be interpreted as bullish. This implies that trading activity has been higher even though ADA returned to its zone’s support and hints at a potential bounce. 

Cardano Volume | Source: CoinGlass

This is also the case with Open Interest, which was on a steady uprise from May 24, coming from a low of $244 million to $280 million today, June 5. 

Cardano Open Interest | Source: CoinGlass


Open Interest is the number of outstanding contracts for a derivative, and an increasing number means that traders are opening their positions more frequently, assuming incoming volatility.

Can ADA Break $0.50 Resistance? 

Cardano‘s price has been downward since reaching a high of $0.80 on March 14. It briefly fell to $0.40 on April 13 before rebounding to above $0.44, and then it ascended to $0.53 by April 23, meeting resistance at a descending trendline originating from the March peak.


ADAUSD | Credit: Nikola Lazic/Tradingview

Following this resistance encounter, the price dipped again to test the $0.42 level for support and has since recovered slightly. These movements established the horizontal zone between $0.42 and $0.51 above the 0.618 Fibonacci level. 

ADA is currently trading around $0.45, close to its horizontal support. With the RSI on the daily chart at its mid-point, there is potential in both directions. However, the prevailing trend might continue downwards if selling pressure mounts and the price drops below $0.40.

On the other hand, the daily chart MACD is positive, having crossed its moving averages to the upside on May 31. Although the oscillator bars are small, they are green, meaning we could see an uptrend developing. 

There are still no major signs of a potential breakout. But considering that ADA fell by over 50% from its peak, held above 0.618 Fibonacci, and established a horizontal zone, we could anticipate the start of a new upward advancement. 

If the price escapes this zone, we could see a larger move that could bring the ADA to a new yearly high of $1. 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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