💥 Cardano Bulls Poised for Next Rally — $1.44B OI in Play

Monday's Cardano price is up after rising roughly 11% last week.

ADA's rising open interest and good funding rate imply a bullish derivatives outlook.

Momentum indicators suggest further upside.

Cardano (ADA) is trading over $0.82 on Monday after rising roughly 11% in the previous week. Since ADA's Open Interest (OI) is growing and financing rates are positive, derivatives data imply traders are optimistic. Bullish momentum indicators predict rally continuance.

Cardano derivatives data is optimistic.
Exchange-traded Cardano futures OI climbed from $1.20 billion on August 3 to $1.44 billion on Monday, the biggest amount since July, and has remained climbing. Rising OI indicates fresh money entering the market and purchasing, which might accelerate the ADA price increase.

In addition to growing OI, Cardano's financing rate became positive last week and has continued climbing, suggesting that longs are paying shorts. This positive rate suggests market bullishness, and abrupt reversals from negative to positive have typically accompanied Cardano price gains.

Cardano Price Prediction: Momentum is bullish
After finding support at $0.70 on August 3, Cardano gained roughly 15% till Sunday. As of Monday, it's up 3% over $0.82.

ADA might rise to its July 21 high of $0.93 if it consistently closes above its daily resistance around $0.84.

Momentum indicators favor bullishness. The daily RSI is 61, above its neutral value of 50, indicating bullish momentum. Moving Average Convergence Divergence (MACD) is also displaying a bullish crossing, signaling a purchase signal and an upward trend.

If ADA fails to close above daily resistance at $0.84 and corrects, it might fall to its 61.80% Fibonacci retracement level at $0.77.

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