Cardano Open Interest Returns To New High, Is ADA Selloff Over?

Cardano (ADA) witnessed a noticeable uptick in Open Interest (OI) amidst the price fluctuation challenges facing the coin in the last 30 days.

This renewed interest in ADA saw investors commit millions in ADA futures, which jumped by 2.03%.

Renewed Investor Confidence in ADA

CoinGlass data shows that in the last 24 hours, 932.09 million ADA has been committed in the ADA futures market.

This represents $713.31 million within the time frame. This renewed interest on the part of Cardano investors suggests these traders anticipate some price stability and upward movements soon.

These ADA futures traders were active on Gate.io, Binance, Bybit, Bitget, and OKX. 223.52 million ADA valued at $171.24 million were committed on Gate.io.

This accounts for approximately 24% of the cumulative OI. In that order, Binance and Bybit had 207.21 million ADA and 202.28 million ADA, respectively.

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These account for 22.26% and 21.72%. In monetary terms, this equates to $158.81 million and $154.93 million, respectively.

The other two active exchanges were Bitget and OKX, with 18.81% and 5.71% of the cumulative Open Interest.

This accounts for 175.69 million ADA or $134.19 million and 53.15 million or $40.74 million, respectively.

Notably, ADA’s third highest growth month occurred in February, with an average rate of 29.1%.

It is unclear if Cardano investors are still betting on a massive price rebound, hence the surge in Open Interest.

However, as per Cryptorank data, ADA is performing 18.7% below investors’ expectations.

Analysts maintain that the coin might not leave many investors satisfied with their projections except for the price of ADA registering a staggering jump.

Cardano Price Struggles Amid Market Volatility

Cardano price was changing hands at $0.798 as of this writing, representing a 3.02% uptick in the last 24 hours.

However, trading volume has declined by 14.24% to $768.81 million. In the past seven days, ADA has experienced wild fluctuation in an attempt to reclaim the elusive $1 level.

ADA’s rebound journey saw it rise from $0.7652 to $0.8262. However, the market participants could not support ADA’s new price level, which dragged it to lower levels.

This volatility has left some investors worried about its future price outlook. Market watchers maintain that many Cardano holders remain hopeful of a price shift.

They state this is signaled by the increase in Open Interest by over 2% in the last 24 hours.

Can ADA Break Out?

This optimism might have been fueled by signs of potential movement based on technical indicators.

In the short term, analysts predict that ADA could break the $0.85 resistance level with renewed interest.

If this happens, it might have the momentum to retest the $1 mark or aim higher in a bullish rally.

However, if its ongoing fluctuations mean it cannot find support at $0.70, then ADA might plunge deeper to $0.50.

Analysts have suggested that the exchange-traded fund (ETF) filing with the U.S. Securities and Exchange Commission (SEC) might help catalyze ADA’s price boost.

Grayscale has filed for Cardano ETF, and approval could push the price up due to increased institutional interest besides retail investors.

A quicker catalyst to ADA’s price jump is if Bitcoin should rebound above $100,000 as the leading digital asset tends to lift other altcoins like ADA.