Cardano Price Prediction as $1 Billion Trading Volume Floods In – What's Going On?
Cardano (ADA) is down nearly 10% on Friday as the cryptocurrency gets caught up in a broader market pullback that has seen the likes of bitcoin drop back below $30,000.
ADA was last trading just above $0.32, down more than 15% from the multi-week highs it high at $0.38 earlier in the session.
The big market moves have been, unsurprisingly, accompanied by high trading volumes.
As per CoinGecko, ADA trading volumes were close to $1 billion across major spot exchanges in the last 24 hours, well above normal.
Cryptocurrency markets have been exceptionally volatile over the past two days in wake of a US judge ruling that XRP is not a security and that Ripple’s XRP sales via public exchanges did not constitute the offering of an investment contract.
The ruling, touted as a big win for the industry, delivered a big lift to sentiment on Thursday, lifting ADA 23.5% on the day.
But profit-taking has taken over on Friday, perhaps exacerbated by reports of layoffs at Binance.
Some in the crypto space are also arguing that the US judge’s XRP ruling has added to regulatory confusion, given that the judge also said that Ripple’s institutional XRP sales did violate federal securities law.
Either way, the ADA pullback and failure to hold above the $0.35 resistance area has confused its near-term outlook.
ADA price predictions are likely to remain bullish.
While the cryptocurrency could well slip all the way back to test its prior pennant structure in the $0.30 area, this could present a good opportunity for bulls to get involved once again.
And with ADA having already now chopped through $0.35 resistance, rendering it less of a psychological hurdle for future retests, bulls are still likely to target a test of yearly highs above $0.46.
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