Crypto markets experienced a broad rally on Wednesday, with the altcoin sector posting significant gains. Leading the charge was Cardano (ADA), which surged nearly 8% from $0.384 to $0.426, reclaiming a key technical level above its 50-day moving average at $0.396.
A major driver of the move was a dramatic 13% surge in Cardano's futures open interest (OI) over 24 hours, reaching $849.89 million. This spike reflects heightened liquidity and trader participation in the derivatives market. The broader market rally triggered a massive $684 million in leveraged futures liquidations, with bearish short positions accounting for $579 million of that total as traders were caught off guard.
Analysts point to a short squeeze and a rebound from oversold conditions as catalysts. Cardano had previously declined from a high of $0.4374 on January 6, marking losses on six out of seven days. The current rally aims to establish the $0.396 level as support for a continued climb, with next resistance targets seen at $0.44, $0.48, and $0.55.
Institutional adoption provided a fundamental boost. The rally was fueled in part by Cardano's recent integration into "meinKrypto," the regulated crypto trading platform operated by German banking giant DZ Bank. This move enhances ADA's visibility and accessibility for traditional investors. Furthermore, trading volume reinforced the advance, with ADA's 24-hour volume jumping roughly 55% to over $938 million.
Looking ahead, market participants are watching for Cardano to hold above the 50-day MA. The Cardano Foundation has also scheduled an AMA for January 19, 2026, to discuss a proposed $80 million Ecosystem Fund aimed at supporting network startups and infrastructure.
