Cardano (ADA) Up 7% in 24 Hours as the Altcoin Faces Massive Sell-offs
Cardano seems to be on a bull run today as altcoins continue to rally. ADA, trading at $0.37 as of writing, had recorded an increase of over 7% over a period of 24 hours. The assets trading volume had recorded an astonishing 1955 increase within the same period, signifying the amount of activity taking place in the altcoin’s network.
The assets market cap also recorded a 7% increase taking it to $16,699,910,152 as the amount of ADA stood at 34,719,155,027 ADA as of the time press time.
Why such an enormous surge in trading volume?
Cardano (ADA) has lately been subjected to a big price increase on the market, which was then followed by a sizeable price decrease practically immediately thereafter before today’s recovery. As a consequence of this sudden change of events, investors have begun to take profits likely causing the surge in trading volumes. Many of these investors are of the opinion that Cardano’s rebound is simply temporary and will eventually lead to yet another drop in the not-too-distant future.
This sell-off may be ascribed to investor uncertainty over the long-term viability of Cardano’s recent price surge, which caused them to sell off their holdings. A feeling of anxiety may have been induced among market players as a result of the sudden increase in price, which may have motivated them to capitalize on short-term profits while anticipating an approaching price correction. The consensus among these investors is that the current rebound may lack the impetus necessary to transfer into long-term development for Cardano. This is the predominant opinion among these investors.
What next for Cardano?
In spite of these worries, Cardano keeps moving forward both in terms of technological breakthroughs and usage in the real world. Being a blockchain platform of the third generation, it has attracted interest due to the energy-efficient proof-of-stake (PoS) consensus method it utilizes, as well as its ability to allow a broad variety of decentralized applications (dApps) across a number of different sectors. Despite this, the most recent price movement has been mostly determined by the emotion of the market as well as the actions of profit-takers.
It is still unknown if Cardano will be able to overcome the current wave of criticism and continue on its upward trajectory even if it does. It is possible that the capacity of the platform to show concrete development, encourage adoption, and deliver on its promises to the larger blockchain ecosystem is the key to a price rise that is more steady and will endure for a longer period of time.
