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Cardano remains bullish in derivatives despite market shift – ADA to surge?

2min Read

The Cardano Open Interest saw a slight increase in the last 24 hours, which indicated an inflow of cash. 

Cardano remains bullish in derivatives despite market shift

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  • Cardano remained tenth in market capitalization rankings.
  • It was with an increase of less than 1% as of this writing.

Cardano [ADA] recently dropped from its position as the ninth-largest cryptocurrency by market cap. However, its derivatives market remains strong, with a slight increase in trading volume and open interest observed recently.

Cardano metrics remain positive

An analysis of Cardano derivative metrics on Coinglass indicated slight increases. The volume chart showed a rise to approximately $280.7 million at the time of writing.

By the end of trading on 4th June, the volume was around $270 million, reflecting an increase of over $10 million in the past 24 hours.

Cardano Open Interest

Source: Coinglass

Additionally, the increase in volume was mirrored in the Open Interest, indicating more cash flowing into ADA from investors. This movement is typically seen as a bullish signal, suggesting that investors anticipate a price change.

As of this writing, the funding rate remained above zero, at approximately 0.0106%, indicating a positive trend. While not at its highest, this positive funding rate suggests there are currently more buyers than sellers.

This reflects a general sentiment of optimism regarding a future price increase.

Cardano remains 10th in market capitalization

Data from CoinMarketCap showed that Cardano remained in the tenth position, with a market capitalization of approximately $16.5 billion as of this writing.

It was behind Toncoin, which now holds the ninth position with a market capitalization exceeding $17 billion.

ADA dropped to tenth place in the market capitalization rankings as TON experienced a price surge that ADA couldn’t match.

The chart showed that TON increased by over 12% in the past seven days, while ADA’s increase was less than 1% at the time of writing.

ADA sees positive trends

An analysis of Cardano’s price trend on a daily timeframe showed positive movement over the past few days. On 3rd June, Cardano increased by 2.46% and traded at approximately $0.45. As of this writing, it was trading at around $0.46, reflecting a less than 1% increase. 

Despite this upward trend, the price has not yet broken above the short-term moving average (yellow line), which acts as its immediate resistance.

Cardano price trend

Source: TradingView


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Furthermore, the analysis indicates that if Cardano can break through the immediate resistance (yellow line), the next resistance level is the long-term moving average (blue line) at around $0.50.

If Cardano surpasses these levels, its market cap will likely increase, allowing it to reclaim its previous position in the market capitalization rankings.

 

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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