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The price of Cardano (ADA) has dipped by 8.74% after hitting a five-month high of $1.01 on August 14.
Interestingly, the price of the ADA coin is dropping as the futures trading volume soars.
The pullback has put traders and analysts on edge, with many now weighing whether the surge in derivatives activity could pave the way for a decisive breakout or if it signals the onset of heightened volatility.
ADA’s slip after a rally past $1
Cardano’s price is currently hovering between $0.91 and $0.96 after briefly breaking through a consolidation triangle and touching $1.01 last week.
The rally lifted ADA more than 20% over seven days, but the momentum faded as sellers regained control, and the $1 mark has once again proven to be a strong psychological barrier, as buyers struggled to sustain gains above it.
Market data indicate that ADA’s market capitalisation has surpassed $34 billion, but the pressure at resistance levels has sparked renewed caution.
Cardano futures volume surge to a multi-month high
On August 14, Cardano’s futures trading volume surged to $6.96 billion across major exchanges, its highest level since March.
The figure, shared by analyst Ali Martinez using Glassnode data, represents a dramatic increase from the $1 to $4 billion range seen in recent months.
Cardano $ADA futures volume hit $6.96 billion, the highest level in 5 months!
Such sharp spikes in derivatives activity often precede periods of volatility, as traders position themselves for larger moves in either direction.
In Cardano’s case, the surge coincided with its push above $1, suggesting that speculative interest in ADA is intensifying at a critical price juncture.
The derivatives data reflect both increased market engagement and the potential for a significant trend shift if momentum can be sustained.
Institutional spotlight adds intrigue
Adding to the focus on ADA, Grayscale recently created a trust for Cardano in Delaware, sparking speculation about a possible spot ETF in the future.
While no formal application has been filed, the move has placed institutional attention on ADA just as it approaches the critical resistance zone.
The Grayscale development adds to the narrative that Cardano is increasingly viewed as a contender in the evolving crypto investment landscape.
Resistance zone holds firm
Despite the optimism, Cardano (ADA) continues to face heavy resistance between $1.00 and $1.25.
This range has repeatedly capped rallies in past cycles, making it a key area to watch.
Analyst Dan Gambardello has described $1.25 as the “doors open” level for Cardano, arguing that a confirmed break above it could mark the beginning of a new bullish phase.
The Cardano move to and through $1.25 (the $ADA bull market doors) is looking very close… It’s the top of that red rectangle and it would be a very important bull market indicator for Cardano.
For now, however, traders remain split. While some, like Ali Martinez, highlight the bullish triangle formation as a constructive pattern, the fading volume during the latest rally could be a sign of exhaustion.
Technical signals support cautious optimism
Short-term indicators show a mixed picture. The Relative Strength Index (RSI) has dipped below the overbought level, which creates room for upward movement without the risk of overbought conditions.
At the same time, the 50-day moving average is also climbing, providing a layer of dynamic support.
The MACD indicator is also flashing positive signals, reinforcing the case for a possible continuation if buyers return in force.
Cardano price analysis | Source: TradingViewHowever, the market’s reaction around the $1 barrier remains crucial. Only a sustained push above $1.00 will validate the bullish setup and open the door toward $1.10 and beyond.
Market analysis, however, shows that the Cardano price must first break past the resistance levels at $0.9323 and $0.9735 for it to make an attempt at $1.02.
If ADA fails to retake $1.00 convincingly, then the token could revisit support levels near $0.85 or even $0.80.
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