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May 22, 2024
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Cardano Consolidates Near Key Support Level At $0.3 – Is A Breakdown Incoming For ADA Price?

The post Cardano Consolidates Near Key Support Level At $0.3 – Is A Breakdown Incoming For ADA Price? appeared first on Coinpedia Fintech News

A significant segment of the altcoin market is closely monitoring the recent price fluctuations of ADA as it remains within a consolidated range. Despite strong announcements regarding network upgrades, the ADA price has not matched investor sentiment since the start of 2023. It has now come under the spotlight after the SEC classified it as an unregistered security, forcing investors to distance themselves from the project. As ADA trades at a crucial support level of $0.3, it raises fears of a potential bearish turn in the upcoming hours. 

Cardano’s TVL Continues To Rise Despite Declining Price 

Cardano (ADA) has been making waves, not for its price action, but for a different metric altogether – its Total Value Locked (TVL). Despite a declining price trend, Cardano’s TVL has been on a steady upward trajectory, indicating a growing level of trust and interest in the platform.

As per data from DeFiLlama, there has been a consistent surge in Cardano’s TVL over the past quarter, with an impressive increase of nearly 30%. The TVL now stands at $178.6 million, a significant leap from its early 2023 level of around $50 million. This represents remarkable growth in a relatively short span of months.

TVL, or Total Value Locked, is a critical metric in the decentralized finance (DeFi) sector. It represents the total amount of assets staked or locked in a blockchain’s smart contracts, serving as an indicator of the network’s popularity and utility.

In the case of Cardano, its TVL has been on a consistent rise, even as its token price experiences a downward trend. This increase suggests that more users are locking their assets in Cardano’s DeFi protocols, indicating growing confidence in the platform’s long-term potential.

What’s Next For ADA Price?

Cardano is currently experiencing a fierce tug-of-war between bullish and bearish forces below the 200-day EMA. Bears tried multiple times to plunge the ADA price below the crucial support line of $0.3 but failed as bulls emerged near the lower levels to defend a decline. As of writing, ADA price trades at $0.304, declining over 0.55% in the last 24 hours. 

The slight decline of the 20-day EMA and the RSI hovering below the midpoint fail to provide a distinct edge to either buyers or sellers. This situation could shift in favor of the bears if the price dips below $0.3, potentially dragging the price down to $0.27-$0.29. ADA price might hover around this region for a bit before triggering any upward correction. 

On the flip side, if buyers manage to push the price above $0.32, it would indicate that the bulls have regained control and ADA is ready for an uptrend. This could send the ADA price toward the next resistance of $0.34. However, bears are expected to put up strong resistance at this level.

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