Key Takeaways:
- ADA large transactions rise by 9.42% to $25.48 billion, driven by whale activity
- ADA price drops by 12.49% to $1.01 while trading volume increases by 132.07%
- Long liquidations surge as ADA volatility underscores risks in high-leverage trading
Analytics platform IntoTheBlock reports that Cardano (ADA) has recorded $25.48 billion in large transaction volumes over the last 24 hours. This marks an increase of 9.42% compared to the previous day, driven by heightened activity from whales and institutional players.
Source: IntoTheBlock
Large transactions, typically exceeding $100,000 in value, accounted for an impressive 21.24 billion ADA during this period. While such activity often signals substantial buying or selling, the token’s price has remained under pressure, reflecting broader market trends.
Price Decline and Increased Market Activity
Despite the surge in large transactions, ADA’s price has taken a hit. Over the past 24 hours, the token recorded a decline of 12.49%, trading at $1.01 (as of December 9). Market capitalization fell to $35.55 billion, reflecting significant losses.
Trading volume surged by 132.07% to $3.91 billion, signaling intensified market activity amid profit-taking and speculative trading.
The fully diluted valuation (FDV) of ADA, which currently stands at $45.57 billion, suggests investor confidence in the asset’s long-term potential, given its capped total supply of 45 billion ADA.
Volatility Drives Liquidations and Bearish Sentiment
ADA’s price chart highlights notable volatility, with the token peaking at $1.15 before plummeting to $1.01. The sharp decline, particularly on the evening of December 9, suggests potential external triggers, such as macroeconomic shifts or significant liquidations.
Source: CoinMarketCap
A spike in liquidations accompanied the price drop, with long positions bearing the brunt of the impact. Data reveals that leveraged long positions were liquidated en masse as ADA’s price tumbled from $1.40 to below $1.00, exacerbating bearish sentiment.
Source: Coinglass
The spike in ADA liquidations signaled a departure from the relatively balanced activity observed earlier in the year. November saw ADA begin a bullish rally, attracting traders to leverage long positions.
However, December’s price reversal led to a surge in long liquidations, significantly outpacing shorts. This trend underscores the cryptocurrency market’s volatility and highlights the risks associated with high-leverage trading.
