In conjunction with this trending bullish sentiment, Cardano (ADA) is one of the top chains surging with open interest currently reclaiming near $1 billion. This impressive pump indicates deepening consumer optimism about the digital asset’s prospects. As staking activity continues to rise alongside a noteworthy price recovery, Cardano is making waves with investors and analysts across the globe. The recent outlook for the digital asset reveals a potential retest of strong resistance levels in the next few days or weeks.

With it, the cryptocurrency’s open interest has surged past $900 million, pointing to a highly bullish sentiment. This surge marks a clear influx of capital into Cardano’s derivatives market, propping its bullish sentiment for ADA price. Combined with rising staking activity, the figures tell a story of rising investor confidence in the Cardano network.

Technical Indicators Point to Further Gains

A bottoming price formation has seen ADA price rebound sharply. Yet it has broken through that all-important technical level, getting the whole market’s attention. Having rebounded from its seven-month low of $0.6425, Cardano broke through the 50, 100 and 200-day Exponential Moving Averages (EMAs). This strong movement completed the bullish flag pattern. Since then, this breakout from the key $0.74 level has been backed by a 14.55% price pump, adding further credence to the growing bullish sentiment.

Without the vertical rise, golden crossovers are less likely to occur. Next, we see a golden cross formation, a bullish pattern in which the 50-day EMA crosses above the 200-day EMA, usually promising gains ahead. If the positive trend continues, Cardano could flip its 50% Fibonacci retracement level at $0.62 to support. The next real resistance is at the 1.272 Fibonacci, right around $1.77.

After breaking the $0.74 resistance, Cardano is currently eyeing the $1.20 level. Further encouraging signs can be found in derivatives market data.

Staking Activity Boosts Network Strength

Not only has staking activity on the Cardano network seen record highs, it’s making the community, protocol, and its foundation even stronger. As it stands today, 22.08 billion ADA tokens are currently secured in staking, spread across more than 2,764 active staking pools. This broad base of participation reinforces the community’s investment in the network and adds to its long-term robustness.

With 1.33 million staking addresses, the network has one of the biggest and most engaged user bases in crypto. Because so much of the staking activity is done honestly, it makes the network more secure. This can have an indirect effect of increasing ADA’s price by reducing its circulating supply.

Potential Risks and Reversal Scenarios

Though the future looks bright for Cardano, there are risks to consider. A fall below the $0.74 support level would negate the current bullish sentiment. Even a small decline could be the catalyst for a broad-based sell-off, retesting support at lowermost support levels.

Investors are advised to keep a hawk eye on price action and trading volume to accurately determine the strength of the bullish trend. That said, it is just as important to stay focused and be on guard for future market corrections.