CardanoIt broke the $0.61 resistance on February 16 and trends indicate that more bullish moves may be coming.
ADA is the best-performing mega-cap this week, driven by a heavy inflow into the tier-1 altcoin sector. crypto- stood out as one of its assets.
It remains to be seen whether ADA bulls will take advantage of the prevailing bullish catalysts to reclaim $1 for the first time since the TerraUST crash in May 2022.
Cardano Open Interest Has Doubled in the Last 21 Days
Cardano’s price has gained 37% since the last local bottom on January 25, reaching $0.61 in the daily time frame on February 16. During this time, Cardano’s ecosystem added approximately $5.7 billion to its market value.
Looking beyond spot markets, recent trends observed across derivatives reveal a rare bullish alignment.
CoinGlass’ open interest data is currently cryptocurrency The unit tracks the face value of active futures contracts listed in its holdings. As of January 25, ADA open interest was at $217.1 million. In an unusual trend, it is now up another $218.7 million to reach a 4-month high of $435.8 million on February 16.
The 100.7% increase in open interest indicates that speculative investors have doubled their investments in the ADA futures markets over the last 21 trading days.
Digging deeper, it becomes clear that rapid growth in investor interest and market participation has outpaced the growth in Cardano spot prices.
While ADA’s 37% price increase over the same period is notable, it pales in comparison to the staggering 100.7% increase in open interest.
Strategic investors often perceive such unusual market dynamics as a strong bullish signal for two primary reasons: The significant increase in open interest indicates increased market activity and increased investor confidence in ADA’s short-term price prospects, and the significant disparity between price increases and open interest growth. can indicate underlying market strength and the potential for continued upward momentum.
Cardano Price Prediction: Is the $1 Target Possible?
Koinfinans.com According to market trends, the price of Cardano looks set to approach $1 in the coming weeks. However, historical accumulation trends suggest that ADA may face stiff resistance in the $0.67 range.
IntoTheBlock’s global inflow/outflow (GIOM) data groups all available traders based on their entry price. GIOM shows 109,300 existing owners purchased 1.5 billion ADA at an average price of $0.64.
Considering this is the largest set of holders purchasing ADA above current prices, a decisive break above $0.65 could effectively open the door for a larger rally towards $1 as predicted.
The bears could invalidate this high bet if the ADA price falls below $0.50. However, in this scenario, 345,590 addresses purchasing 5.03 billion ADA at an average price of $0.52 could create a significant buying wall.
