Cardano (ADA) is attracting attention in the derivatives market as open interest has surged to $723 million. This indicates strong interest from futures traders while the spot market remains cautious.
Rising Open Interest, But Mixed Sentiment
According to data from CoinGlass, Cardano's 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, indicating that spot market participants are approaching ADA cautiously.
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.
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.
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.
