Cardano (ADA), the eighth largest cryptocurrency by market capitalization, has seen $748,068,693 in open interest within the past 24 hours, according to data from CoinGlass.
Open Interest (OI) reflects the total funds allocated in outstanding futures contracts, effectively measuring the amount of leverage.
After days of decline, Cardano's open interest saw a slight 4% uptick in open interest in the last 24 hours to reach $748 million. Although still significant, it remains substantially lower than the peak of $1.21 billion reached on March 3, 2025, and this year's high at $1.44 billion on Jan. 19, 2025.
However, ADA prices remain in the red on a daily and weekly basis. At the time of writing, ADA was down 0.87% in the last 24 hours to $0.717 and down nearly 22% weekly.
Cardano (ADA) and other cryptocurrency assets mentioned in the initial crypto reserve announcement, such as BTC, ETH, SOL and XRP, rose but have now largely retraced their gains. The rise was spurred by high expectations of immediate impact, but short-term enthusiasm was insufficient to maintain momentum.
Rebound imminent?
The crypto market is showing mixed price action as the producer price index was unchanged in February, while economists polled by Dow Jones expected a 0.3% month-over-month increase.
Following an earlier sell-off, market sentiment is currently significantly weakened, and altcoins have surrendered most of their gains, leaving the majority of investors with no profits in this cycle.
According to CryptoQuant, this suggests that even without an additional sharp decline, the market has already been sufficiently lightened, putting it in a favorable position for a future upward advance without the necessity for any significant dips.
Currently, the market is in the final phase of the upward cycle, experiencing a strong correction, which increases both risk and investment difficulty. However, when the market approaches oversold territory, the likelihood of a rebound grows.
Despite the current stagnation, most cryptocurrencies, including Bitcoin, are in an oversold state, indicating that a recovery might not be far away. However, it is still too early to say conclusively if the market has entered a full-fledged bear cycle.
