Key Insights
- •Cardano's open interest drops 7.26%, signaling decreased market optimism and leaving bullish traders stunned.
- •ADA's price fails to sustain gains, dropping below $0.40 despite a brief surge to $0.41 earlier in the day.
- •Volume declines 20% as ADA struggles to reclaim the $0.40 resistance, suggesting bearish momentum and market uncertainty.
Cardano's Open Interest Reverses Amidst Market Volatility
Cardano (ADA) bulls were caught off guard as the cryptocurrency’s open interest posted a surprising reversal, following strong growth earlier this week. Data reveals a significant decline of 7.26% in Cardano’s open interest within the last 24 hours. Only two billion ADA tokens, valued at $780.3 million, remained locked in the futures market, but this volume wasn’t enough to shift the momentum.
At press time, ADA was trading at $0.3911, reflecting a 3.32% drop in its price. The coin had previously shown potential for an upward movement, rising from $0.3888 to reach an intraday high of $0.4093. However, that momentum quickly faded, leaving the price lower than expected. The decline in open interest coupled with a 20.56% drop in trading volume to $588.63 million over the past 24 hours adds to the bearish outlook.
Declining Volume and Bearish Signals
The drop in volume stands in stark contrast to the over 72% surge Cardano saw just a day prior, which pushed the price up to $0.42. However, technical indicators are now leaning toward bearish sentiment, as ADA faces repeated rejection at the $0.40 level. The Relative Strength Index (RSI) is at 49.9, signaling that short-term traders might be exiting their positions, further contributing to the weakness.
Lingering Optimism and Future Outlook
Despite these short-term setbacks, some traders remain optimistic about Cardano’s future. Notably, those trading on platforms like Gate, Binance, and Bybit account for a significant portion of ADA’s open interest. These traders, holding $210.95 million, $130.16 million, and $101.65 million in ADA, respectively, are hopeful that the blockchain's positive developments in early 2026 will push the price higher. This includes recent advancements like the listing of Midnight perpetual futures on Coinbase, the Google Cloud stake pool launch, and growing institutional interest in ADA.
The market will now focus on whether Cardano can break through the crucial $0.40 resistance level. If ADA manages to gain momentum and rise above this threshold, it could set the stage for a potential bullish rally.