Cardano Derivatives Surge as ADA Trading Volume Hits $1.85B

Cardano (ADA) is seeing renewed trader interest, with Coinglass data revealing a 40% spike in ADA derivatives trading volume in the past 24 hours, reaching $1.85 billion. This surge suggests increasing activity from both retail and institutional investors. Despite this rise, open interest dipped 10.31% to $851 million, indicating that some traders may be taking profits and closing positions.

Notably, ADA options trading volume plummeted by 92.94% to just $6,590, signaling reduced use of short-term hedging strategies and possibly less concern about near-term volatility. Meanwhile, liquidation data shows $8.4 million in losses, with $8.34 million from long positions, reflecting aggressive buying that was quickly reversed. In the last 12 hours alone, $1.48 million in ADA positions were liquidated.

The long/short ratio for ADA sits at 0.8804 overall, meaning more traders are shorting than longing the token. However, major exchanges show contrasting sentiment: Binance reports a bullish ratio of 2.6887 longs per short, while OKX shows 2.5984, indicating optimism among traders on those platforms.

ADA’s price has fallen 3.57% to $0.7059, after briefly touching $0.7388. With a market cap of $24.94 billion, it remains the 10th-largest cryptocurrency. Analysts are watching the key $0.70 level, as a drop below it could lead to further downside.

Despite the recent dip, Cardano maintains a solid 75% confidence score. Its long-term outlook depends on adoption within DeFi and ongoing ecosystem development. Increased trading volume and market participation could set the stage for ADA’s next major move.