Saad Ullah
Cardano (ADA) experiences severe selling pressure as futures trading volume surges and the highly anticipated Voltaire upgrade approaches.
ADA Futures Trading Volume Surges
The futures trading volume for Cardano (ADA) has surged by 29% in the past day, exceeding half a billion dollars. This increase highlights a growing interest in ADA perpetual futures trading, now more popular than the spot market. CoinMarketCap reports that the trading volume for Cardano on exchanges reached $466 million, pushing the total volume above $1 billion.
The rise in futures trading points to an inherently more speculative nature compared to long-term investing. This shift towards futures trading for potential short-term gains is evident in the slight decline in spot market activity, aligning with this trend.
Cardano's Anticipated Voltaire Era
Cardano is set to enter the Voltaire era with the upcoming hard fork, scheduled for Q2 of 2024. Development stages in the Cardano ecosystem are referred to as "eras," and since the Chang hard fork, Cardano has been in the Basho era. The transition to the Voltaire era is highly anticipated.
Historically, before the Alonzo hard fork, ADA's price soared from $0.2 to $3.1, a 30-fold increase within a year. Experts predict a similar upswing for ADA with the forthcoming Voltaire upgrade. The Chang upgrade, aimed at updating all nodes by August, is expected to play a significant role in ADA's price movement. Currently, ADA is priced at $0.4229, down 3.19% in the last 24 hours according to CoinMarketCap.
ADA Under Intense Selling Pressure
After a 7.32% decline over the past week, ADA is under intense selling pressure. If ADA falls below the $0.42 support level, it could further decline to test the $0.39 support level.
The severe selling pressure and increased futures trading activity suggest a volatile period ahead for ADA. Investors are closely watching the market dynamics and upcoming developments. In related news, Meta (NASDAQ:META) plans to lay off 50 VPs in a cost-cutting move to boost efficiency, highlighting broader economic pressures within the tech industry.
Saad Ullah
