Cardano (ADA) Futures Market Heats Up as Investors Commit Millions Amidst Price Fluctuations

Cardano (ADA) witnessed a noticeable uptick in Open Interest (OI) amidst the price fluctuation challenges facing the coin in the last 30 days.

Cardano (ADA) price showed signs of recovery as it rose by 3.02% in the last 24 hours to trade at $0.798 at the time of writing.

However, ADA price still remained far from the $1 level, which had remained elusive for the coin in the last 30 days.

This had led to some traders expressing concerns over the price outlook for ADA.

According to data from CoinGlass, nearly 932.09 million ADA, valued at $713.31 million, had been committed in the ADA futures market in the last 24 hours.

This level of commitment had seen a rise of 2.03%.

suggesting that these traders were anticipating some price stability and possibly upward movements for ADA.

The top five exchanges that saw the highest Open Interest in ADA futures were Gate.io, Binance, Bybit, Bitget, and OKX.

Of the total OI, nearly 24% was on Gate.io, where 223.52 million ADA, valued at $171.24 million, had been committed.

Binance and Bybit followed with 207.21 million ADA and 202.28 million ADA, respectively.

Thisaccounted for 22.26% and 21.72%, respectively, and were valued at $158.81 million and $154.93 million, respectively.

Bitget and OKX had 18.81% and 5.71%, respectively, of the cumulative Open Interest.

This saw 175.69 million ADA or $134.19 million and 53.15 million or $40.74 million, respectively, being committed in ADA futures on the two exchanges.

It was worth noting that ADA’s third highest growth month had seen an average rate of 29.1%.

While the latest data did not provide any information on investors betting on a massive price rebound, Cryptorank data showed that ADA was performing 18.7% below investors’ expectations.

This had led analysts to state that the coin may not be able to leave many investors satisfied with their projections unless the price of ADA were to register a staggering jump.

Cardano Price Struggles Amid Market Volatility

The price of ADA had seen varied changes in the last 24 hours and throughout the week.

At the time of writing, ADA was changing hands at $0.798, showing an uptick of 3.02% in the last 24 hours.

However, the trading volume had declined by 14.24% to $768.81 million.

Over the last seven days, ADA had seen wild fluctuation in an attempt to reclaim the elusive $1 level.

The journey had seen ADA rise from $0.7652 to reach $0.8262.

However, the market participants were unable to sustain ADA’s new price level, dragging it to lower levels.

This volatility had left some investors worried about its future price outlook.

But market watchers were of the opinion that many Cardano holders remained hopeful of a price shift, as signaled by the increase in Open Interest by over 2% in the last 24 hours.

Can ADA Break Out?

The optimism may have been fueled by signs of potential movement based on technical indicators.

In the short term, analysts were predicting that ADA could be set to break the $0.85 resistance level with the buildup of interest.

If this were to happen, ADA could gain the momentum to retest the $1 mark or aim higher in a bullish rally.

However, if the ongoing fluctuations were to leave ADA without support at $0.70, the coin could plunge deeper to reach $0.50.

Meanwhile, analysts were also suggesting that the exchange-traded fund (ETF) filing with the U.S. Securities and Exchange Commission (SEC) could help catalyze ADA’s price boost.

Grayscale had filed for a Cardano ETF, and if approved, the price could be pushed up due to increased institutional interest besides retail investors.

A quicker catalyst to ADA’s price jump could be if Bitcoin were to rebound and cross $100,000, as the leading digital asset tends to lift other altcoins like ADA.