ADA Poised for A Major Bull Rally as Open Futures Interest Hits ATH, Here's Why

ADA has continued to consolidate around the $1 price level, having been fairly stagnant in the last 7 days. However, on-chain data reveals

ADA has remained within the close range of the $1 price point in the last 7 days, with minimal price fluctuations. However, on-chain data from CoinGlass reveals that the coin’s open futures interest has hit a new all-time high of $1.42 billion.

This development signifies a crucial stage in ADA’s price journey, as open futures interest showcases the total amount of outstanding futures contracts that are yet to be closed. Higher open futures interest usually indicates increased investor participation and optimism in the coin's price movements.

In another development, ADA's Total Value Locked (TVL) reached $701 million earlier this month, as reported by Defillama analytics. This growth, albeit at a slower rate, instills optimism regarding the ecosystem's expansion.

Delving into the reasons behind ADA's potential for a major bull rally, several key factors come to light. The Hydra upgrade, for instance, is poised to bolster Cardano's capacity to handle up to one million transactions per second. This exponential enhancement in both speed and scalability will render the blockchain supremely suited for decentralized finance (DeFi), non-fungible tokens (NFTs), and business applications. If Hydra gelingt in resolving scalability concerns, it could entice developers and enterprises to join the Cardano ecosystem.

Moreover, unlike many grandiose projects, Cardano has forged practical collaborations across diverse fields and domains. The blockchain technology is revolutionizing industries as varied as education, healthcare, and finance. This blockchain is also geared towards constructing real, functional products, which could bolster its standing in the crypto market.

The market is also abuzz with anticipation for $ADA, with some analysts likening its recent performance to the early stages of the 2021 bull cycle. Crypto analyst Ali Martinez, for example, compared ADA's recent trajectory to that experienced in 2021.

According to Martinez, ADA has already undergone a 43% correction, suggesting that the next leg up could be in just a few weeks. Drawing from historical data, Martinez anticipates that ADA could hit $6 soon.

Highlighting institutional interest and bullish sentiment for Cardano, the coin was recently included in the Grayscale Digital Large Cap Fund, attesting to its long-term growth prospects. Additionally, as reported by Santiment, whales are accumulating ADA, indicating their optimism in the asset's future.

Even market analysts have shifted their stance to a positive one. Veteran analyst Peter Brandt, for example, believes that ADA is poised for a surge. He stated, “Cardano $ADAUSD has bottomed for a grand bull market.” Brandt strongly believes that the Altseason has already begun and we could see altcoins like ADA surge.

ADA is currently priced at $1.05, up by 0.99% since the beginning of Monday's trading session. The coin's trading volume has also surged by over 40% in the last 24 hours and is currently at 3.1 billion. As historical trends indicate that Cardano could be on the cusp of a major bull run, the crypto community eagerly awaits the coin's next move.