Cardano (ADA) has seen a sudden surge in its market performance, reclaiming the $0.60 value. The resurgence is supported by the fact that within 21 days, open interest doubled, indicating a strong bullish sentiment among the investors. The ecosystem of the digital currency has received an influx of about $5.7 billion, thereby boosting its market capitalization and confirming the increased investor optimism in its short-term price movement.

Open Interest Reaches Record Level

The derivatives market for Cardano can be observed to have an interesting pattern, with the open interest in ADA futures contracts having a sharp spike. Having started at $217.1 million on January 25th, the open interest reached a four-month high of $435.8 million by February 16th.

The impressive rise of 100.7% almost doubles the investment in the ADA futures markets, leaving behind the spot price's growth of the asset during the same time. Price gains, which are so much greater than the growth of open interest, usually portend a bullish sign, meaning that there is the possibility of a sustained upward momentum.

ADA Resistance levels

Within such market dynamics, analysts are focusing on the potential of ADA to cross the $1 line, an event that has not taken place since the TerraUST crash in May 2022. Yet resistance at the $0.67 level presents a significant obstacle. 

ADA/USD 24-hour price chart (source: CoinMarketCap)

As a result of failing to breach the intra-day high, the ADA price fell to an intra-day low of $0.5753, where support levels were found. At press time, ADA was exchanging hands at $0.6229, an 8.16% surge from the intra-day low. During the rally, ADA's market capitalization and 24-hour trading volume increased by 8.25% and 98.09%, respectively, to $22,103,494,876 and $746,827,108. 

The data shows that a significant group of holders bought ADA at an average price of $0.64, so this point will be crucial for the asset in the future in terms of price action. A break-out above this level will lead to a rally towards the $1 mark, giving the digital asset a bright future.

Growth of Cardano Wallets and Long-term Holders

Another area of focus is the adoption rate of Cardano, with considerable growth in the number of new wallets being created, representing broader acceptance and utilization of its blockchain technology. 

The network has marked more than 4.5 million wallets registered in total, evidence of the continuous attention and trust in Cardano's capability. Notably, more than three million wallets contain ADA tokens for more than a year, indicating a solid community of long-term investors devoted to the project's prosperity.

ADA Statistics (source: Cardano Blockchain Insights)

ADA/USD Technical Analysis

On the ADA 4-hour price chart, the Chaikin Money Flow (CMF) rating of 0.09 and moving upwards suggests that the bullish momentum is strengthening, indicating a possible breakthrough of the resistance level soon. This positive trend may be supported by increasing trading volume and investor interest in ADA. If the CMF continues to rise and ADA can break through the $0.67 resistance level, it could pave the way for a potential surge toward the $1 mark soon. 

ADA/USD 4-hour price chart (source: TradingView)

Concurrently, the Moving Average Convergence Divergence (MACD) motion in the positive region and moving north further supports the possibility of a bullish breakout in ADA. This combination of indicators could indicate a substantial buying opportunity for traders looking to capitalize on ADA's potential price increase. The histogram on the MACD is also showing signs of increasing bullish momentum, which adds to the overall positive outlook for ADA.