Cardano (ADA) price at $0.78 keeps the 16% uptrend moving with a 1.04% surge on May 9. Despite a minor slowdown, the optimism is high in ADA derivatives as Open Interest (OI) crosses $900 million. Amid tailwinds from increased staking activities and a key level breakout, let’s find out how the OI nearing $1 billion could pump the Cardano price to $1.20.
Cardano Price Breaks $0.74 Zone, Targets $1.20
The bullish trend in Cardano price accounts for 20% from its 7-day low at $0.6425 to break past the $0.74 zone. This marks the end of nearly 60 days of consolidation and signals strong upside potential.
On March 3, Cardano reversed from the $1.20 supply zone, resulting in a near 60% drop to $0.5107 in 36 days. Since then, the $0.74 supply zone, overlapping with the 61.80% Fibonacci level, kept the bullish reversals in check. However, the 14.55% hike in ADA price gave a decisive breakout with a daily closing at $0.7693.
In the bigger picture, the swing lows in ADA price since December 2024 form a declining support trendline. Paired with the $1.20 supply zone, it forms a right-angled descending broadening wedge. Within the pattern, the 61.80% Fibonacci level breakout increases ADA price testing the $1.20 supply zone chances. This marks a more than 50% upside potential.
The Cardano rally has surpassed the close moving 50, 100, and 200 daily Exponential Moving Averages (EMA). Thus, increasing the golden crossover possibility between 50- and 200-day EMAs. Additionally, the rising trend in the MACD and signal lines gives a positive crossover, supporting the extended recovery forecast.
Based on the Fibonacci levels, Cardano price prediction forecasts a surge to the 100% mark near $1.22. If Cardano exceeds the supply zone, marking the descending broadening wedge breakout, the 1.272 Fibonacci level at $1.77 is the next resistance level.
Conversely, the breakdown of the $0.74 resistance turned support zone will nullify the positive cycle thesis to $1.20. Such a scenario will put Cardano’s 50% Fibonacci support level at $0.62 to test.
Cardano Open Interest Crosses $900M
As Cardano sustains above the $0.74 mark, optimism grows in the derivatives market. The Cardano open interest has crossed $900 million, and the OI weighted funding rate remains flat at 0.0103%. As OI nears $1 billion and the significantly bullish funding rate, derivatives data side with an optimistic forecast.
Soaring Staking Activities Support Price Rally
Supporting the ADA price trend, the staking activity on the Cardano network has significantly increased. According to PoolTool, 2,764 staking pools are active, with 1.33 million total staking addresses having staked 22.08 billion ADA tokens. At the current market price of $0.78, these accounts for nearly $17.22 billion.
Furthermore, the One Community ADA (1COMM), a community-led staking pool operator, holds a live staking of 69.04 million ADA tokens, making it one of the most trusted pools.
The post Cardano Price Eyes $1.20 as Open Interest Approaches $1B appeared first on CoinGape.
