Cardano [ADA] has once again become the focus of attention, with trading volume surging by 92%, sparking renewed interest.
This surge comes amidst controversy, with founder Charles Hoskinson having to respond to criticism. With increasing activity, the question now is whether this momentum signifies the start of a sustained recovery or yet another fleeting spike.
Derivatives data suggests a bullish tendency
Cardano's derivatives market shows signs of strong bullish activity.
As of the time of publication, ADA futures trading volume surged by 92.42%, reaching $4.53 billion, with open interest (OI) growing by 12.06% to $1.45 billion. This indicates strong capital inflow and increasing trader confidence.
The funding rate has climbed to 0.0285, reinforcing the market's bullish sentiment.
On Binance, the long/short ratio for top ADA/USDT traders is close to 3:1, indicating a dominance of long positions and an enhanced expectation of further increases.
After open interest on the aggregation chart broke through 700 million and stabilized, indicating an increase in speculative activity. This suggests that despite the cooling of options data, optimism is still rising, implying a clear market direction rather than hedging.
Fraud allegations spark heated discussion
The surge in ADA activity coincides with a new round of controversy, as an email accused an employee associated with Cardano of facilitating online fraud.
A user named Robin Engraf claimed to have fallen victim to a fake transaction withdrawal scam, even accusing 'your company of allowing and supporting theft.'
But Charles Hoskinson does not think so. He rebutted in a public X post:
"Will he apologize for falsely accusing me of stealing his money? No... so public shaming is the only deterrent."
This farce has not dampened market momentum; if anything, it has heightened attention.
Is ADA overheating?
At the time of writing, Cardano's price has soared to $0.86, with a daily increase of 4.6%, continuing the sharp upward trend that began earlier this month.
The RSI reading is at 82.17, with ADA firmly in the overbought zone; this usually indicates that a cooling off may be imminent.
Meanwhile, the MACD shows strong bullish momentum, with both the MACD line and signal line steadily climbing.
Trading volume continues to rise, supporting the upward trend. However, ADA may experience a short-term pullback before a sustained breakout occurs.
