Cardano Price Prediction: This $10 million signal could push ADA beyond $0.50

The price of Cardano rose by 15% in the first three days of May 2024 but has since struggled to break through the psychological resistance level of $0.45. Key market data provides insights into the social sentiment leading among ADA traders.
ADA price stagnated at $0.45, performing below the market average
In early May 2024, the cryptocurrency market began a recovery phase, with the global market capitalization of altcoins surging by $142 billion in the past week.
The ADA price initially increased from $0.42 to $0.48, a 15% increase. However, the failure to retake the $0.50 milestone has seen exhausted Cardano’s majority bears surrender the majority of initial gains, with the ADA price retracing back to $0.45 as of the time of writing on May 7.
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Cardano ADA price chart vs. TOTAL2 altcoin market cap
Based on current prices, ADA is up 7.7% this month. However, this performance seems less than impressive when compared to the TOTAL2 chart trend, which captures the overall performance of all crypto assets except Bitcoin (BTC).
As shown above, the $142 billion increase on the TOTAL2 chart represents a 15% increase in the altcoin market as a whole from May 2024 to date.
Speculative traders bet another $10 million on ADA price breakout
As ADA underperformed amid the positive sentiment dominating the overall altcoin market, some strategic traders have been spotted placing bullish bets on ADA.
Coinglass’s open interest indicator tracks changes in the value of perpetual futures contracts for a particular crypto asset. This provides insights into investor participation rates and the direction of their sentiment.
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Cardano ADA price dynamics chart and holdings | Coinglass source
As shown in the above figure, ADA’s open interest was $205.7 million on May 1. However, as of this writing on May 7, that number has increased by $10.5 million to $216.2 million.
This $11.5 million increase represents a 6% increase in open interest over the past week, coinciding with a 7% increase in Cardano’s price. When open interest continues to increase during a price uptrend, it indicates that most Cardano holders are increasing their bets in the hope of making bigger gains if the price rises in the coming days.
ADA Price Prediction: $0.50 Retest is in Progress
As of this writing, the Cardano price is trading at $0.45, down 8% from its monthly high of $0.48 reached on May 3. However, based on the increase in open interest of $10.5 million, the ADA price looks poised to make another attempt to retake $0.50 in May 2024.
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Cardano ADA Price Prediction
Looking at the Bollinger Bands indicator on the daily price chart of Cardano, the bulls are facing stiff resistance at the 20-day SMA at $0.47.
Cardano ADA Price Prediction A breakout above the critical $0.47 resistance level could set the stage for ADA price to move above $0.50 for the first time since April 23, 2024.
However, in the event of a bearish price reversal, bids at $0.43 could provide short-term support, as indicated by the lower Bollinger Band indicator.
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