Cardano (ADA) investors are optimistic about a price rally, as indicated by the recent uptick in the coin’s Open Interest.
In the past 24 hours, ADA’s Open Interest has increased slightly by 1.78% as market participants bet on the asset’s future trajectory.
ADA Open Interest Sees Uptick Amid Price Recovery
CoinGlass data show that investors trading ADA futures have committed to 1.09 billion ADA worth over $765 Million. This development signals renewed confidence among ADA holders as the coin struggles to stay above the $0.70 support level.
Notably, ADA traders are betting on the coin to maintain the rebound move and possibly retest the $1 price level.
ADA price changed hands at $0.7195 as the coin began its recovery journey to the psychological $1 level. ADA’s trading volume is down by 10.26% to $1.12 Billion within the last 24 hours.
However, Cardano holders remain hopeful of a shift in trend as the broader crypto market space is experiencing a drop in investors’ interest. The market’s trading volume has dipped by 11.56%, significantly higher than ADA’s.
An analysis of the ADA holders shows that Binance traders made the most commitment, with 271.96 million ADA valued at $195.81 Million. This accounts for 25.58% of the cumulative Open Interest. Bitget and Gate.io exchanges were next, accounting for 19.43% and 16.38%, respectively.
In ADA terms, these traders committed 206.60 million ADA worth $148.72 Million and 174.18 million ADA valued at $125.41, respectively.
Given this renewed interest from ADA holders, analysts expect the coin could retest new levels if investors sustain the move.
Cardano’s Role in U.S. Strategic Crypto Reserve Raises Questions
Cardano has sparked interest in the broader financial space, particularly due to the U.S. Strategic Crypto Reserve.
As highlighted by a Cardano enthusiast on X, the Securities and Exchange Commission (SEC) has outlined the role of ADA in the U.S. digital infrastructure.
The regulatory body believes Cardano is best suited to provide smart contracts for government services. It is also suitable for securing infrastructure management and for academic credentialing.
This stance suggests that the SEC considers Cardano to play a significant role in enhancing security for state applications and enhancing efficiency.
Experts say Cardano already has government partnerships with Georgia and Ethiopia that could serve as proof of concept. Hence, its inclusion aligns with the U.S. government’s interest in blockchain innovation.
Additionally, Cardano’s Proof-of-Stake model remains more energy efficient than Proof-of-Work blockchains like Bitcoin.
Hence, analysts opine that the U.S. use of the Cardano blockchain and its secure infrastructure could be very fitting.
Conversely, market experts say that placing Cardano in the stockpile has negatively impacted ADA. By estimation, between March 2 and date, ADA has lost close to $15 Billion as it retraced all previous gains made following speculation of its inclusion in the reserve.
Cardano, once the fifth largest asset by market capitalization, has crashed to eighth place.
Will Cardano Bulls Sustain Momentum?
Meanwhile, crypto observers have expressed skepticism about this development’s impact on Cardano bulls.
They maintain that while it could trigger short-term buying interest among ADA bulls, recent price pressure does not support sustained buy-ups.
The risk of likely quick reversal appears high and might affect the coin. Cardano stakeholders remain cautious for now, even assome predict that ADA could hit $2 if it breaks key resistance levels.
The post Cardano Sees 1.09 Billion ADA Open Interest, What Are Bulls Up To? appeared first on The Coin Republic.
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