Cardano (ADA) was trading above $0.265 at the time of writing on Friday, as crypto prices rose broadly, with sentiment improving following Iran’s announcement that the Strait of Hormuz has been opened and will remain open during the ceasefire.
West Texas Intermediate (WTI) oil is trading around $79, down from a daily open of around $90. The reopening of the Strait of Hormuz is expected to ease pressure on global oil and gas supplies.
Renewed Retail Interest Fuels Cardano Recovery
Cardano is experiencing a surge in retail participation, leading to open interest (OI) of $468 million on Friday, up from around $431 million the previous day.
On April 1, OI averaged $406 million, underscoring rising risk appetite and retail capital inflows. ADA requires a highly concentrated retail market to sustain short to medium term profits.
Still in the derivatives market, traders are increasingly betting on a rise in the price of Cardano, as the OI-weighted funding rate remains in positive territory at 0.0089% on Friday. If risk appetite increases further, the chances of ADA narrowing the gap to $0.30 will increase significantly.
Technical Outlook: Cardano breakout is in focus
Cardano is trading at $0.265 with a weak bearish bias as the price remained confined below the 100-day and 200-day exponential moving averages (EMA) at $0.302 and $0.393 respectively. Nevertheless, the pair is trading above the 50-day EMA at $0.263. The broken down trend line has turned into support near $0.248, indicating an attempt at a base-building phase.
Furthermore, the Relative Strength Index (RSI) near 56 indicates mild positive momentum, while the Moving Average Convergence Divergence (MACD) is positive, reinforcing the view that the downside pressure is tapering off rather than intensifying.
On the upside, initial resistance lies at the 100-day EMA around $0.301, where a daily close would be needed to undercut the broader bearish structure. The 200-day EMA at $0.393 serves as a more distant bullish target and medium-term hurdle. On the downside, immediate support is seen at the 50-day EMA at $0.263, followed by the former descending trendline break level near $0.248. A break below this latter zone would reopen the way for a weekly open at $0.236.
Open Interest, Funding Rate FAQs
(The technical analysis for this story was written with the help of AI tools.)
