Cardano's record high open interest metric raises concerns about a sharp sell-off, but strong market demand suggests the ADA rally could continue.
Cardano (ADA) surged by 88.8% between Nov. 18 and Dec. 3, reaching its highest price in nearly three years at $1.33. This rally mirrored broader gains in the altcoin market, which reached a peak of $1.52 trillion on Dec. 3, up from $1.16 trillion on Nov. 18.
The 15-day ADA rally was accompanied by an all-time high in leveraged positions using futures contracts, prompting traders to question whether the dip to $1.16 on Dec. 3 presents a buying opportunity and to evaluate the potential risk of cascading liquidations.
Altcoin market cap, USD (red) vs. ADA/USD (blue). Source: TradingView / Cointelegraph
