- Cardano’s open interest has surged to $723 million, indicating strong futures market activity, but spot market bulls remain cautious as trading volume dips.
- With ADA in oversold territory and approaching the key $0.60 resistance, a breakout is possible if investor confidence strengthens.
Cardano (ADA) is drawing major attention in the derivatives market as open interest has surged to $723 million, signaling a strong appetite from futures traders. Despite the significant capital commitment, equivalent to around 1.3 billion ADA tokens—the spot market hasn’t shown the same level of enthusiasm, with bulls still hesitating to fully engage.
Rising Open Interest, But Mixed Sentiment
According to data from CoinGlass, Cardano open interest increased by 0.99% in the past 24 hours, bringing total futures market exposure to $723.56 million. This level of open interest reflects optimism among leveraged traders who are expecting a potential upward move in ADA’s price.
However, while open interest is on the rise, trading volume has dipped by 6.62% to $478.84 million, a sign that spot market participants are approaching ADA cautiously. The disconnect suggests that although traders are positioning themselves for a potential breakout, they are not yet ready to push the price forward with strong buying momentum.
Price Action Remains Subdued
At the time of writing, Cardano is trading at $0.5593, posting a 0.91% daily gain. It briefly touched a high of $0.564 before retreating slightly. Analysts believe that ADA could retest the key resistance level at $0.60, especially if market sentiment continues to improve.
The broader crypto market has turned mildly bullish, up 0.56% overall, contributing to ADA’s modest gains. But the lack of significant follow-through from bulls suggests that many investors are still waiting for clearer signals before re-entering the market with confidence.
Oversold RSI Suggests Rebound Potential
Technical indicators hint that a reversal may be on the horizon. Cardano’s Relative Strength Index (RSI) recently dipped to 23, well below the neutral zone, suggesting that ADA is in oversold territory. This typically indicates a potential rebound, especially in a recovering market.
If buyers step in and volume supports the move, ADA could break past $0.60, a critical psychological and technical resistance level. However, that level has also proven to be a historical sell zone, with many investors likely to take profits near that point, adding pressure.
While open interest on Cardano has reached an impressive $723 million, the price remains locked in a cautious range, and bulls have yet to fully activate. With technical indicators showing oversold conditions and broader market sentiment improving, ADA may be poised for a rally, but only if investors show stronger conviction and push the price past the stubborn $0.60 barrier. For now, Cardano remains a coin to watch closely as it straddles the line between hesitation and potential breakout.