Amid a general market downtrend, Cardano (CRYPTO:ADA) exhibits resilience and potential for recovery, buoyed by a notable 12% increase in open interest, signaling investor optimism for the altcoin's ascent.
The derivatives market for ADA shows robust bullish bets, with open interest climbing to $433 million from $384 million within a week, suggesting a strong demand and positive sentiment among traders.
Despite mixed market signals, the technical indicators like RSI and MACD for Cardano present a cautiously optimistic outlook, with the RSI on the brink of a bullish breakout and the MACD sustaining its bullish crossover, albeit with diminishing momentum.
For ADA to initiate a 14% rally and reach the $0.75 milestone, it must first reclaim its position above crucial resistance levels and the 50 and 100-day Exponential Moving Averages, setting the stage for a significant price increase.
Cardano's immediate future hinges on maintaining the $0.63 support level; a slip below this could lead to a downturn towards $0.60 or even $0.59, closely aligned with the 200-day EMA, challenging the bullish outlook and necessitating a reassessment of ADA's potential growth trajectory.