Cardano (ADA), the 10th-largest cryptocurrency by market capitalization, appears oversold after the price plummeted following regional tensions in the Middle East. In the last 24 hours, however, Cardano has flashed bullish signals as there has been an uptick in open interest.
Open interest climbs as traders eye Cardano recovery
According to CoinGlass data, Cardano’s open interest has climbed by 1.11%, as 1.25 billion ADA were committed to the futures market. This volume of ADA translates to $680.99 million in fiat currency. The development suggests the market is tilting toward recovery.
According to CoinMarketCap data, Cardano rose to a peak of $0.5513 as traders revived interest in ADA. ADA has pulled back slightly and currently exchanges at $0.5430, representing a 0.51% decline in the last 24 hours.
Meanwhile, Cardano’s trading volume has spiked by 14.11% to $997.38 million. The hope of Cardano sustaining a recovery now relies on investors increasing volume by a huge margin. If this outlook is sustained, ADA has the potential to attain higher price levels.
It is worth mentioning that the spike in open interest was more common among traders on Binance, Bitget, Bybit and Gate.io. Notably, Binance led with $155.68 million, or 22.86% of the committed amount. The other exchanges, Bitget, Bybit and Gate.io, had 18.84%, 16.15% and 13.85%, respectively.
Cardano market sentiment remains optimistic
As U.Today reported, Cardano’s Relative Strength Index (RSI) indicator might have reached oversold territory as the RSI fell to 23, suggesting a possible reversal.
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Meanwhile, Cardano recently hit a major milestone with 110 million transactions. This signals growing adoption as on-chain activity continues to spike. The number of delegated wallets has also soared as a result.
Amid these positive sentiments, Cardano investors are confident that ADA will not slip from the top 10 crypto assets by market capitalization. The asset keeps consolidating despite the volatility it has been facing.
