Cardano Price Prediction: ADA Open Interest Hits All-Time High, Next Target Aiming for $1.03 Resistance Level

Cardano (ADA) continues its pump, trading at over $0.88 at the time of writing this article on Monday, having surged nearly 60% over the past four weeks. Derivative data supports the bullish outlook, as ADA's open interest (OI) has reached an all-time high, while technical analysis indicates that the likelihood of the token returning to the psychological barrier of $1 in the short term is increasing.

Cardano Open Position Contract Amount Reaches 1.66 Billion USD

Data from CoinGlass shows that the open interest of the BNB futures on the exchange surged from $1.18 billion on June 14 to $1.66 billion on Monday, reaching an all-time high. The increase in open interest indicates that new or additional funds are entering the market, along with new buying pressure, which may drive the current price of ADA up.

Another factor supporting the bullish outlook for the platform is the recent surge in interest and liquidity from traders in the Cardano public chain. Token terminal data shows that the weekly token trading volume for the Cardano public chain skyrocketed from $8.12 billion in the second week of July to $10.3 billion last week, marking the highest level since mid-March.

ADA Price Analysis: Bulls Aim for Higher Prices

ADA has risen for four consecutive weeks, increasing nearly 60% since mid-June, and closed above the weekly resistance level of $0.80 last week. On Monday, the coin continued to rise above $0.88.

If ADA continues its bullish trend, it may extend the pump to $1.01, which is the 61.8% Fibonacci retracement level from the December high of $1.32 to the February low of $0.50.

On the weekly chart, the Relative Strength Index (RSI) is at 58, above the neutral level of 60, indicating that bullish momentum is strengthening. The Moving Average Convergence Divergence (MACD) showed a bullish crossover last week, issuing a buy signal.

(Source: Trading View)

The daily chart shows that ADA broke above the downward wedge pattern's upper resistance trend line on June 9 and reached a target level of $0.84 last week. Additionally, on Sunday, ADA closed above the daily resistance level, also at $0.84. As of Monday when this article was written, ADA continues to rise above $0.88.

If the daily support level of 0.84 dollars is maintained, ADA may continue its pump until the daily resistance level of 1.02 dollars, which roughly corresponds to the technical level discussed on the upper weekly chart. If it successfully closes above this level, it is expected to rise further until the next daily resistance level of 1.13 dollars.

The RSI on the daily chart is at 82, indicating that the market is in an extremely overbought state, and traders should remain cautious. The MACD indicator on the daily chart showed a bullish crossover at the end of June, and it still maintains that crossover. The green histogram is rising above the neutral zero line, indicating that bullish momentum is strengthening.

If ADA fails to find support near $0.84 daily, it may continue to decline and retest the next daily support level at $0.73.

(Source: Trading View)