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Cardano (ADA), the 10th-ranked cryptocurrency, has been on a downward spiral in the last seven days, shedding 13.96% of its value. Bears continue to dominate the Cardano market space as the asset appears to have lost momentum. ADA’s open interest in the last 24 hours suggests investors have not lost hope.
Cardano’s oversold RSI signals potential ADA rebound
As per CoinGlass data, Cardano holders have committed $147 billion to the asset’s future within this period. Open interest refers to the total sum of unsettled active futures contracts that investors have committed to Cardano.
This $1.47 billion represents 1,870,000,000 ADA, a 3.18% increase in the last four hours. The volume of ADA and funds committed suggests that investors are trying to shake off the bears amid anticipation of a positive price reversal.
Broader technical signals suggest that upward momentum might be triggered by this increase in open interest. Notably, Cardano’s Relative Strength Index (RSI) at 30.97 signals oversold conditions. ADA is likely to rebound from this, given the renewed interest from holders.
The asset has been flashing bullish signs, with the price climbing from a low of $0.7886 to an intraday peak of $0.8291. As of press time, Cardano exchanges at $0.7882, representing a 3.43% decrease in the last 24 hours.
However, trading volume is up by 12.31% to $1.24 billion as market participants resume active engagement with the asset. If investors sustain the current momentum, it might support Cardano’s rebound moves.
An analysis of the data shows that most of the ADA holders anticipating a bullish rally are on Binance. These accounts account for 19.39% of the total open interest and have committed $285.75 million or 362.47 million ADA.
Bitget, Gate and Bybit complete the top four with $261.75 million, $260.83 million and $243.69 million bets on the futures contract, respectively.
Can Cardano whales cause breakout to $1?
A major catalyst that could get Cardano to the elusive $1 might be ecosystem whales. In a recent market frenzy, these large holders snapped up 20 million ADA and caused prices to spike by over 7%. It also pushed the price closer to $1 as ADA changed hands at $0.946.
A recurrence amid this uptick in open interest could serve to boost Cardano’s upward momentum.
Meanwhile, members of the community remain curious about Charles Hoskinson's plans for the asset. In a recent message to holders, Hoskinson assured readers that "Cardano is going to break the internet."
How it will do so and what it means for ADA remains unclear, for now.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team