Cardano (ADA) price continues to be influenced by broader market signals that suggest a potential decline in the altcoin sector. However, investor behavior indicates a demand for price increases. The price movement of the popular altcoin Cardano does not seem to affect investors much, as their optimism prevails over the broader market’s bearish signals. This is also evident in the inflow of funds into the token in the derivatives market.
Investor Interest in ADA
Open interest refers to the total number of outstanding or unsettled derivative contracts, such as futures or options, at the end of a trading day. It reflects the total amount of money involved in these contracts and represents the market’s interest in them.
Generally, high open interest indicates high market activity and liquidity, which can signal strong investor interest and potential price volatility. Conversely, low open interest may imply limited market activity and waning investor interest. In the case of the cryptocurrency in question, open interest increased by 12.7% over the past week, from $384 million to $433 million, indicating that investors are largely placing bets on an uptrend, which is also reflected in the positive funding rate.
Momentum for a Cardano Uptrend
In the altcoin market, this uptrend could result in price indicators showing signs of a rebound. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are currently sending mixed signals. The RSI is at the peak of an uptrend, which can be confirmed when it turns the neutral line marked at 50.0 into support. On the other hand, the MACD continues its bullish crossover but may lose momentum. If investor expectations for a rise spread to price indicators, the Cardano price could recover.
