- Cardano remained tenth in market capitalization rankings.
- It was with an increase of less than 1% as of this writing.
Cardano [ADA] recently dropped from its position as the ninth-largest cryptocurrency by market cap. However, its derivatives market remains strong, with a slight increase in trading volume and open interest observed recently.
Cardano metrics remain positive
An analysis of Cardano derivative metrics on Coinglass indicated slight increases. The volume chart showed a rise to approximately $280.7 million at the time of writing.
By the end of trading on 4th June, the volume was around $270 million, reflecting an increase of over $10 million in the past 24 hours.
Source: Coinglass
Additionally, the increase in volume was mirrored in the Open Interest, indicating more cash flowing into ADA from investors. This movement is typically seen as a bullish signal, suggesting that investors anticipate a price change.
As of this writing, the funding rate remained above zero, at approximately 0.0106%, indicating a positive trend. While not at its highest, this positive funding rate suggests there are currently more buyers than sellers.
This reflects a general sentiment of optimism regarding a future price increase.
Cardano remains 10th in market capitalization
Data from CoinMarketCap showed that Cardano remained in the tenth position, with a market capitalization of approximately $16.5 billion as of this writing.
It was behind Toncoin, which now holds the ninth position with a market capitalization exceeding $17 billion.
ADA dropped to tenth place in the market capitalization rankings as TON experienced a price surge that ADA couldn’t match.
The chart showed that TON increased by over 12% in the past seven days, while ADA’s increase was less than 1% at the time of writing.
ADA sees positive trends
An analysis of Cardano’s price trend on a daily timeframe showed positive movement over the past few days. On 3rd June, Cardano increased by 2.46% and traded at approximately $0.45. As of this writing, it was trading at around $0.46, reflecting a less than 1% increase.
Despite this upward trend, the price has not yet broken above the short-term moving average (yellow line), which acts as its immediate resistance.
Source: TradingView
Is your portfolio green? Check out the Cardano Profit Calculator
Furthermore, the analysis indicates that if Cardano can break through the immediate resistance (yellow line), the next resistance level is the long-term moving average (blue line) at around $0.50.
If Cardano surpasses these levels, its market cap will likely increase, allowing it to reclaim its previous position in the market capitalization rankings.
Powered by WPeMatico
