Bitcoin ordinals will be recorded on the Cardano blockchain network after the co-founder of Cardano, Charles Hoskinson, made a strategic partnership with Fair Gate Labs. Hoskinson stated, “Bitcoin DeFi is a mission-critical road map item that IOG will be pursuing in 2025 with partners like Fair Gate Labs and community projects and wallets … it’s time to #AwakenTheSleepingGiant Bitcoin.”
The Cardano blockchain protocol will host Bitcoin DeFi services, which will allow lending, staking, and yield farming without custodial risks, potentially increasing Cardano’s total value locked and user engagement. With this initiative, the CEO plans to swap $100 million worth of ADA with Bitcoin and stablecoins.
Charles Hoskinson stated, “ By combining the flexibility of Cardano with the security of Bitcoin, new financial tools and services are unlocked.”
ADA is on the hunt for another lower high, will the 50-day EMA support?
Despite the major partnership that promoted interoperability between the two giant networks, the ADA prices have been quite stagnant. On the weekly chart, ADA is moving sideways, fluctuating between $0.55 and $0.59. However, the ADA volumes up by 88% as it records $755 million.
Source: Tradingview
On the 4-hour chart, ADA has been fluctuating inside a descending wedge. The token touched the upper trendline, marking two lower highs. Since ADA has bounced off the lower trendline, there is a high chance that the next lower high might be established close to $0.61. Since ADA is being supported by the 50-day EMA, which is a strong support level, the chances of ADA falling below this level are quite slim.
Long positions trump shorts despite ADA’s crashing prices
The ADA Open Interest is up by 4% as it reaches 777 million, while the long/short ratio is 0.9. The OI and long/short ratio show that the market is bullish, as there are more long positions than shorts.
Additionally, the Open Interest (OI) weighted funding rate is a yardstick that could be used the measure the sentiment in the market. In ADA’s case, the OI funding rate has been consistent in the positive region despite ADA losing value. This shows a bullish sentiment where there are a lot of leveraged long positions in the market, and this could burst into a rally.
