Cardano (ADA) recently experienced a shift in its ranking within the cryptocurrency market, dropping from the ninth to the tenth position by market capitalization. Despite this, the derivatives market associated with Cardano has shown stability, with a modest increase in trading volume and open interest observed in recent times.
An analysis of Cardano’s derivative metrics on Coinglass revealed incremental growth. The trading volume surged to approximately $280.7 million at the time of assessment, marking an increase from around $270 million recorded by the end of trading on 4th June, indicating a rise of over $10 million within a 24-hour period.
Moreover, the uptick in trading volume was mirrored in the Open Interest, suggesting a heightened interest from investors in ADA. This surge is often interpreted as a bullish sign, indicating that investors are anticipating a potential price movement.
As of the latest data, the funding rate remained positive, standing at approximately 0.0106%, signaling a favorable trend. Although not at its peak, this positive funding rate implies a current imbalance favoring more buyers than sellers.
This overall sentiment reflects optimism regarding a potential price increase in the future. Market data from CoinMarketCap indicated that Cardano maintained its tenth position in terms of market capitalization, standing at around $16.5 billion.
It lagged behind Toncoin, which secured the ninth position with a market capitalization exceeding $17 billion. ADA slipped to the tenth spot in the market capitalization rankings as Toncoin witnessed a significant price surge that Cardano could not match.
Toncoin saw a notable increase of over 12% in the past week, whereas ADA’s growth was less than 1% at the time of evaluation. A daily analysis of Cardano’s price movement displayed positive momentum over the recent days. On 3rd June, Cardano surged by 2.46%, trading at approximately $0.45. Currently, it is trading around $0.46, reflecting a marginal increase.
Despite the upward trajectory, the price has yet to breach the short-term moving average (yellow line), which serves as an immediate resistance level. The analysis suggests that surpassing this resistance could lead Cardano to encounter the long-term moving average (blue line) at approximately $0.50.
Breaking through these levels could potentially trigger a market capitalization expansion for Cardano, enabling it to reclaim its previous ranking in the market capitalization hierarchy.
