Cardano (ADA) price rises as open interest climbs 25%

Cardano (ADA) has experienced a price increase from approximately $0.24 to $0.28, moving above its 200-day exponential moving average (EMA). This rally coincided with a significant rise in open interest, which jumped roughly 25% to $304 million between October 3 and October 5, marking its highest daily close since early April.

Data from Santiment suggests the price movement was driven by new leveraged positions rather than a simple short squeeze. While measured in dollars, open interest rose by 25%, and when measured in ADA tokens, it still increased by approximately 13%. This indicates that traders were entering new positions rather than just closing existing shorts. Funding rates also shifted from their most negative point in a month on October 2 to positive territory.

Whale activity saw a notable spike, with 413 transactions worth at least $100,000 recorded on October 5, which is roughly 2.2 times the recent weekday average. Despite the price and whale activity, social media volume remained relatively stable, standing at approximately 1.1 times the baseline.