Cardano Price Skyrockets 31% in Seven Days Amid Derivatives Surge

Cardano's price has seen a significant surge of around 31% in just seven days, making it one of the strongest large-cap cryptocurrencies this week. The rally began on September 17, when ADA was trading at $0.196, but has since risen to an intraday high of $0.262. This sudden increase has left traders wondering if the market is finally moving past a recent setback.

The surge in Cardano's price can be attributed to several factors, including derivatives traders piling in and shorts getting squeezed. According to CoinGlass data, open interest across exchanges has surged since mid-September, with outstanding contracts reaching 2.37 billion ADA. The funding rate has also flipped positive, indicating that longs are now paying to hold their positions.

The Cardano Foundation's announcement on September 21 that Cardano is part of the official x402 SDK may have contributed to the recent price increase. This move allows any app or AI agent to pay for an API call in ADA without requiring a separate account, API key, or checkout page. The fact that this news has come after a previous flaw in the SecondFi wallet exposed private keys and compromised around 16-20 million ADA also suggests that the market is finally moving past this issue.

A technical analysis of Cardano's price shows that it has been following a textbook recovery structure, with higher lows since bottoming at $0.139 in late June. The recent breakout above the 200-day EMA and reclaiming the $0.245 horizontal level have flipped these zones into support. However, with an overbought reading on the daily RSI, a pause or pullback is expected.