Cardano’s price recently broke through the $0.61 barrier on Feb. 16, marking a significant milestone for the cryptocurrency. What’s interesting is the unusual trend observed in the derivatives market, indicating that more bullish action could be on the horizon. While Cardano (ADA) has emerged as one of the best-performing mega-cap crypto assets in recent times, it remains to be seen if ADA bulls will capitalize on the prevailing bullish catalysts to reclaim $1 for the first time since the TerraUST crash in May 2022.
Since the recent local bottom on Jan. 25, Cardano’s price has surged by 37%, hitting $0.61 within the daily timeframe on Feb. 16. This price increase has led to a substantial addition of about $5.7 billion to Cardano’s market capitalization. These impressive gains have caught the attention of investors and traders alike, drawing significant interest towards the Layer-1 altcoin sector.
Looking beyond the spot markets, recent trends in the derivatives market reveal a rare and bullish alignment. CoinGlass’ open interest data indicates a significant surge in investor activity in ADA futures markets. Since Jan. 25, ADA’s open interest has more than doubled, reaching a 4-month peak of $435.8 million as of Feb. 16. This 100.7% increase in open interest suggests that speculative traders have shown a strong interest in Cardano’s short-term price prospects.
The substantial growth in open interest, along with the disparity between price gains and open interest growth, are considered strong bullish signals by strategic investors. These factors indicate heightened market activity, growing investor confidence, and potential for sustained upward momentum in Cardano’s price. Based on these market trends, Cardano appears to be on track for another leg-up towards the $1 mark in the coming weeks.
However, historical accumulation trends suggest that ADA could face resistance around the $0.67 range. IntoTheBlock’s global in/out of the money (GIOM) data reveals that a significant number of existing holders had acquired ADA at an average price of $0.64. A decisive breakout above $0.65 could pave the way for a larger upswing towards $1. On the contrary, a reversal below $0.50 could invalidate this bullish prediction and potentially lead to a downward trend in Cardano’s price.
Cardano’s recent price surge past the $0.61 barrier has garnered attention from investors and traders. With bullish signals from the derivatives market and market analysis pointing towards a potential move towards $1, all eyes are on Cardano to see if it can sustain its upward momentum in the face of key resistance levels and potential market fluctuations.