Cardano enthusiasts received a glint of optimism as ADA initiated the week with an upward trajectory. The recent downturns in ADA's value made this positive price surge a welcomed change. However, a deeper look into the volume chart unraveled a conflicting narrative, casting shadows of doubt over the sustainability of the recent trend.

Cardano Wraps Up the Week on a Positive Note

Observations unveiled that Cardano concluded the week on an upward swing. Daily assessments painted a picture of a robust finish to the past week. On April 20th, ADA saw an approximate surge of 8.3%, closing the day around $0.50. This noteworthy uptick marked the end of a consistent upward trend that commenced on April 18th, offering relief from the substantial plunges witnessed in the preceding week. At present, ADA is trading a tad above $0.51, showcasing a modest increase of over 1.5%. Despite the string of positive trends, ADA seems to be ensnared in a bearish pattern.

A scrutiny of the Relative Strength Index underscores its position below the neutral threshold, hinting at the absence of positive momentum in the price trajectory.

Absence of Rise in Cardano's Volume

Recent evaluations of Cardano's market volume bring to light a discernible disparity between investor acts and price shifts. Despite the encouraging price trend, there has been no concurrent rise in volume, failing to breach the $500 million benchmark. The week's commencement saw the volume soaring above $1.3 billion, only to witness a subsequent nearly halving. Presently, the volume lingers around approximately $402 million. This inconsistency points towards a lack of harmony between the price upsurge and volume, alluding to a potential sustainability hiccup in the price escalation trend.

The stagnant volume signifies a dearth of investor involvement, crucial for upholding price surges. A surge in volume could help fortify the current price trend and foster its forward momentum.

Flow of Capital in ADA

In recent days, a conspicuous decline in Cardano's open interest has been noted. Assessments by Coinglass have highlighted the repercussions of this decline. Currently resting around $216.6 million, the open interest has significantly dwindled from the levels above $400 million recorded on April 10th. This decline could signify a drying up of ADA's cash flow.

Despite a recent uptick in interest toward ADA, it is yet to reclaim its former heights. Presently, there appears to be a minor surge in market attention, although Cardano's open interest struggles to redeem the recent drop.