- Cardano remained tenth in market capitalization rankings.
- It was with an increase of less than 1% as of this writing.
As an experienced analyst, I believe that while Cardano [ADA] has faced a setback in terms of its market capitalization rankings, the recent trends in its derivative markets are promising. The slight increase in trading volume and open interest, along with the positive funding rate, suggest a bullish sentiment among investors. This optimism is further reflected in the price trend on a daily timeframe, which has shown positive movement over the past few days, although it has yet to break above the immediate resistance.
Recently, the market value of Cardano [ADA] has decreased, causing it to slip out of the top 9 rankings among cryptocurrencies based on market capitalization. Nevertheless, there’s been some positive movement in its derivatives market. Trading volume and open interest have both seen a slight uptick as of late.
Cardano metrics remain positive
A look at the derivative metrics for Cardano, as examined on Coinglass, revealed some modest gains. At the point of penning this down, the volume stood at around $280.7 million.
The trading volume had reached approximately $270 million by the close of business on June 4th, representing a significant surge of over $10 million from the previous day.
As an analyst, I’ve observed an intriguing development in the ADA market. The trading volume has significantly surged, and this trend was also reflected in the Open Interest figures. This indicates that a substantial inflow of cash from investors has occurred. Historically, such a pattern is often interpreted as a bullish sign, implying that investors are expecting a potential price shift.
At present, the funding rate hovers around 0.0106%, signifying an upward movement. Although it hasn’t reached its peak yet, this positive funding rate implies that there are more market participants purchasing than selling.
This reflects a general sentiment of optimism regarding a future price increase.
Cardano remains 10th in market capitalization
As I analyzed the data from CoinMarketCap, I observed that Cardano held the tenth spot among cryptocurrencies with a market capitalization around $16.5 billion at the current moment.
Toncoin occupied the eighth spot previously, but now its market capitalization surpasses $17 billion, making it the ninth largest cryptocurrency by this measurement.
In simpler terms, while TON saw its value soar, causing it to climb up the market cap rankings, ADA failed to keep pace with this price rise and consequently slipped down to the tenth position.
In the last week, the TON cryptocurrency experienced a growth of more than 12%, whereas ADA saw a minimal rise of below 1% during the same period.
ADA sees positive trends
Over the last several days, there has been a noticeable uptick in Cardano’s price trend when observed on a daily basis. Specifically, on June 3rd, the cryptocurrency saw a gain of 2.46%, reaching approximately $0.45. Currently, its price hovers around $0.46, representing a minimal rise of less than 1%.
Although the price has been rising, it hasn’t managed to surpass the short-term moving average (represented by the yellow line) yet, which serves as a significant barrier for further growth.
As a researcher examining the price movements of Cardano, my findings suggest that surmounting the current resistance, represented by the yellow line, could pave the way for the next significant hurdle. This hurdle is the long-term moving average, which lies around $0.50 and is marked by the blue line.
As a researcher studying the cryptocurrency market, I would hypothesize that if Cardano manages to exceed certain thresholds, its market capitalization is expected to rise significantly. Consequently, Cardano could regain its former ranking among the top cryptocurrencies by market cap.
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2024-06-05 15:03