- Cardano price rides its shorter-term correction trend within the flag formation.
- Crypto whales accumulate over $100 million worth of ADA in the last 24 hours.
- Cardano’s futures open interest surged to $1.87 billion, indicating the increasing confidence of derivative traders.
ADA, the native cryptocurrency of the Cardano blockchain, bounced over 4% during Wednesday’s U.S. market hours to trade at $0.88. This buying pressure likely followed a relief rally in the crypto market after a sharp correction since last week. However, the ADA price witnessed additional bullish momentum amid whale accumulation and high open interest (OI) in the derivatives market. The price jump also contributes to the formation of a bullish continuation pattern, signaling a potential breakout ahead.
Cardano Price Jumps as Traders Bet Big on Volatility
Since last week, the Cardano price has shown a brief pullback from $1.019 to a low of $0.83, registering a 17.8% loss. The pullback followed a broader market correction amid the macroeconomic change in the U.S. market.
Despite the price drawdown, the ADA futures open interest jumped from $1.2 billion to a recent swing of $1.87 billion on Monday—a 55% increase—in the last three weeks. The growth indicates more traders are opening new positions in the futures market, betting on the potential volatility ahead.
ADA futures open interest | Coinglass
The higher OI value often reflects an expansion in leveraged long or short bets, which can amplify future price swings.
Similarly, the total volume locked (TVL) in the Cardano network showed a notable surge from $332.8 million to $437 million, projecting a 31% growth. This surge indicates more capital is being deployed in Cardano’s DeFi protocols, reflecting stronger ecosystem engagement.
The TVL uptick highlights underlying adoption and demand for Cardano’s smart contract ecosystem, often bolstering sustained price growth.
Total Volume Locked (TVL) | DeFiLlama
Together, the spike in futures activity and on-chain capital deployment bolster Cardano’s potential for a potential price jump.
By the press time, the Cardano price trades at $0.87, with an intraday gain of 4%. Subsequently, the asset’s market cap bounced to $31.5 billion. While the 24-hour trading volume is 21% down to waver at $21.38 billion.
Whale Activity | Santiment
The price jump gained momentum as crypto accumulated over 100 million worth of ADA in the last 24 hours, according to data shared by market analyst Ali Martinez.
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Cardano Price Drive Steady Correction Within Flag Formation
Since last week, the Cardano price correction has resonated within two converging trendlines of a bull flag pattern. The chart setup is characterized by a long ascending trendline indicating the dominant trend in price, followed by a temporary pullback within two converging trendlines to recuperate the exhausted bullish momentum
Currently trading at $0.88, the ADA coin is just 2% away from challenging the pattern trendline. A potential breakout from this resistance will signal the continuation of the prevailing uptrend. If the buyers managed to hold this breakout, the post-breakout rally could push the price to a 23% surge to hit $1.14.
The coin price is trading above the 100-and-200-day exponential moving averages (EMAs), indicating the bullish sentiment in the market to support further surges.
On the contrary note, if the sellers forced a breakdown below the flag support, the current correction could gain momentum. The post-breakdown fall could push price 6% to retest the next significant support at $0.733.
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