• The rising volume on ADA could further push down its price.
• Open Interest fell, suggesting that ADA could drop as low as $0.40.

Cardano’s [ADA] fall to $0.45 has been accompanied by a surge in its volume, AMBCrypto discovered. Between the 22nd and the 23rd of January, Cardano’s volume soared from 234 million to 453 million.

This means that there have been a lot of transactions involving the token.

But an increase in volume is not always good news for the price of a cryptocurrency. When the price increases and the trading volume follows, the trend could signal a strong interest in buyers.

This could also serve as a strength for an upward price action.

However, rising volume on falling price does the opposite. In ADA’s case, if the volume continues to increase alongside a price decrease, the trend could lead to a further drawdown.