ADA Derivatives Spike as Traders Eye Next Move

Derivatives Trading Spikes: Cardano (ADA) saw a 40% surge in derivatives trading volume, reaching over $1.85 billion. This suggests increased interest from traders, despite open interest dipping 10%—likely due to profit-taking.
Mixed Market Signals: While options volume collapsed by 93%, showing waning short-term interest, long positions dominate on exchanges like Binance and OKX. Liquidations heavily impacted long traders, with over $8 million wiped in a single day.
Price Dips but Fundamentals Hold: ADA dropped 3.5% to $0.705, flirting with a key $0.70 support level. Despite the pullback, its $25 billion market cap and strong investor confidence reflect optimism in its long-term potential.

Cardano’s derivatives market just lit up—with trading volume shooting up nearly 40% in the past day, now topping $1.85 billion, according to data from Coinglass. That kind of spike? Usually means folks, maybe even the big guys, are getting curious again about ADA. Whether they’re betting for or against it—that’s another story.

Shifting Sentiment in Open Interest and Options

Now here’s where it gets a bit weird. While volume’s up, open interest actually dipped by about 10%, down to $851 million. That drop probably means some traders already bagged their profits and bailed out. And ADA options? Practically ghosted—volume plunged nearly 93% to just over $6,500. Options are a go-to for short-term plays, so maybe fewer people are hedging or expecting big moves soon.

Meanwhile, ADA’s long/short ratio tells its own tale. On average, it’s sitting at 0.88, which leans bearish. But over on Binance? Whole different vibe—there are about 2.68 long trades for every short. Same thing happening on OKX, where the ratio is 2.59. Clearly, some traders are still feeling bold enough to go long despite the recent price slip.

Liquidations Hit Longs Hard

The action hasn’t been without casualties. Liquidations racked up $8.4 million in losses yesterday alone—and nearly all of that came from long positions. Zooming in, there were $1.48 million in liquidations over just 12 hours and smaller bits every few hours. Definitely shows some bulls were caught off guard.

Price Slips—But ADA’s Still Holding Strong

Despite the volume boost, ADA’s price took a bit of a tumble, down 3.5% on the day to around $0.705. After peeking at $0.7388 recently, it couldn’t hold that ground and slid back. The $0.70 level now looks like the one to watch. If it drops under that, we might be looking at more downside.

But even with the price wobble, ADA’s holding a market cap close to $25 billion and still ranks among the top 10 cryptos. Its fundamentals haven’t changed overnight, and people are still keeping an eye on how it plays out in DeFi and broader blockchain adoption. So while the short-term’s a little messy, the long game’s still got potential.