Welcome to Extreme Investor Network, where we provide unique insights and analysis on the latest trends in the stock market, trading, and financial world. Today, we are diving into the fascinating world of Cardano and its recent price movements.
As Cardano faced a struggle to attract demand in the final week of May 2024, trading activity dipped, causing the 24-hour volume to hit a 30-day low of $166 million on June 1. However, things took a positive turn as the bulls kicked off June 2024 on a strong note.
Our exclusive data reveals that Cardano’s open interest has been steadily climbing since the beginning of May 2024. From $190 million on May 1, open interest has surged to $268 million by June 6, marking a 41% increase in capital inflows over the past month.
When open interest experiences persistent growth over an extended period, it exerts bullish pressure on the asset price for two key reasons:
Increased Capital Inflows: A rising open interest indicates a greater inflow of capital into the market, which typically supports higher prices due to increased demand.
Positive Market Sentiment: Consistent growth in open interest reflects growing investor confidence and belief in the asset’s upward potential, fueling further price appreciation.
Looking ahead, our forecast suggests that Cardano’s price could potentially break above the $0.50 resistance level, with a 6% surge in the last four days and open interest climbing by over $80 million. However, according to IntoTheBlock’s GIOM data, the $0.48 mark poses a significant hurdle to overcome in the short term.
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