Cardano Price Forecast: ADA bulls eye next leg higher as Open Interest climbs to $1.44 billion

• Cardano price trades in the green on Monday after gaining almost 11% in the previous week.
• Derivatives data support a bullish outlook as ADA’s open interest rises alongside a positive funding rate.
• The momentum indicators favor further upside.

Cardano (ADA) price trades higher above $0.82 at the time of writing on Monday after gaining nearly 11% in the previous week. Derivatives data suggest further gains as ADA’s Open Interest (OI) is rising alongside positive funding rates, suggesting bullish sentiment among traders. The technical outlook suggests rally continuation as momentum indicators show bullish bias.

Cardano’s derivatives data shows a bullish bias

Futures’ OI in Cardano at exchanges rose from $1.20 billion on August 3 to $1.44 billion on Monday, the highest level since the end of July, and has been consistently rising. Rising OI represents new or additional money entering the market and new buying, which could fuel the current ADA price rally.

Cardano’s Open Interest chart. Source: Coinglass

Apart from the rising OI, Cardano’s funding rate has flipped into a positive rate last week and has been constantly moving up, indicating that longs are paying shorts. This positive rate indicates a bullish sentiment in the market, and historically, such sharp reversals from negative to positive have often coincided with strong rallies in Cardano’s price.

Cardano’s funding rate chart. Source: Coinglass

Cardano Price Forecast: Momentum indicators show bullish bias

Cardano price found support around its key level at $0.70 on August 3 and rallied nearly 15% until Sunday. At the time of writing on Monday, it continues to extend its gains by 3% trading above $0.82.

If ADA continues its upward trend and closes above its daily resistance at $0.84 on a daily basis, it could extend the rally towards its July 21 high of $0.93.

The momentum indicators further support the bullish thesis. On the daily chart, the Relative Strength Index (RSI) reads 61, above its neutral value at 50, suggesting bullish momentum is gaining traction. Additionally, the Moving Average Convergence Divergence (MACD) indicator is currently showing a bullish crossover, giving buy signals and suggesting the start of an upward trend.

ADA/USDT daily chart

However, if ADA fails to close above the daily resistance at $0.84 and faces a correction, it could extend the decline to find support around its 61.80% Fibonacci retracement level at $0.77.