Cardano has recently garnered significant attention as it shows promising signs of potential growth in the market. Although its value remains under $1, various indicators point toward a possible upward trend. This includes increasing engagement from both retail and institutional investors, coupled with analysts suggesting a bullish pattern evident in the price charts.
Surge in Cardano Interest with 25% Open Interest Growth
Recently, Cardano has experienced a noteworthy uptick in market interest. This surge is evidenced by the substantial increase in cryptocurrency open interest observed over recent weeks, particularly a remarkable rise in just 24 hours.
According to data from Coinglass, between May 21 and May 22, Cardano’s open interest escalated from $902.27 million to $958.05 million, marking an impressive 25% spike in just one day. This follows a low of $715.01 million earlier in May, indicating that investors are increasingly making calculated bets on the altcoin’s future performance.
Open interest refers to the total number of outstanding futures or options contracts for a cryptocurrency. It reflects both the long and short positions, indicating the level of investor activity. A rising open interest suggests increased buying interest, while a decline may indicate a lack of conviction among traders.
Interestingly, as open interest rises, it signals that bears may anticipate potential downward movement in the Cardano price. The Long/Short ratio currently indicates that 49.71% of bets are long while 50.29% are short, reflecting a divided market outlook.
ADA Escapes the Falling Wedge Pattern
Following a previous downturn, Cardano had been trapped in a falling wedge pattern, a characteristic of a downtrend. However, spurred by Bitcoin’s recent all-time highs, Cardano is now breaking out from this constricted price pattern.
Crypto analyst JimmyX recently pointed out this breakout potential in a post on X, outlining a path for Cardano’s next targets. Current price movements suggest that Cardano is heading toward the initial target of $0.9508 after surpassing the crucial $0.8 level. Following this, analysts predict further targets at $1.0295 and $1.1316.
