• Cardano trades above $0.265, rising alongside the broader crypto market on Friday.
• The ADA derivatives market gains momentum as futures Open Interest climbs to $468 million.
• ADA investors are increasingly piling into long positions, as the Open Interest-Weighted Funding Rate holds in positive territory.

Cardano (ADA) grinds higher, trading above $0.265 at the time of writing on Friday, as crypto prices broadly rise, buoyed by improving sentiment after Iran’s announcement that the Strait of Hormuz has been opened and will remain open during the ceasefire.

The West Texas Intermediary (WTI) Oil is trading around $79, down from the daily open of around $90. The reopening of the Strait of Hormuz is expected to ease pressure on global Oil and Gas supplies.

Renewed retail interest fuels Cardano recovery

Cardano is experiencing a surge in retail participation, driving Open Interest (OI) to $468 million on Friday, up from roughly $431 million the previous day.

On April 1, the OI averaged $406 million, underscoring growing risk appetite and retail capital influx. ADA requires a highly concentrated retail market to sustain short to medium-term gains.

Still in the derivatives market, traders appear to be increasingly betting on an advance in the Cardano price, as the OI-Weighted Funding Rate remains in positive territory at 0.0089% on Friday. If risk appetite expands further, the likelihood of ADA closing the gap to $0.30 would increase significantly.

Technical outlook: Cardano breakout in focus

Cardano trades at $0.265, holding a weakly bearish stance as price remains capped beneath the 100-day and 200-day Exponential Moving averages (EMAs) at $0.302 and $0.393, respectively. Nonetheless, the pair trades above the 50-day EMA at $0.263. The broken downward trendline has turned into support near $0.248, hinting at an attempted base-building phase.
Moreover, the Relative Strength Index (RSI) near 56 signals mildly positive momentum, while the Moving Average Convergence Divergence (MACD) is positive, reinforcing that downside pressure is easing rather than accelerating.

On the topside, initial resistance lies at the 100-day EMA around $0.301, where a daily close above would be needed to ease the broader bearish structure. The 200-day EMA at $0.393 acts as a more distant bullish target and a medium-term barrier. On the downside, immediate support is seen at the 50-day EMA at $0.263, followed by the former descending trendline break level near $0.248. A drop back below this latter zone would reopen the path toward the weekly open at $0.236.

(The technical analysis of this story was written with the help of an AI tool.)