A significant portion of the altcoin market is closely monitoring recent ADA price swings as it remains within a consolidated range. Despite strong announcements regarding network upgrades, ADA price has been out of line with investor sentiment since early 2023. It’s now in the spotlight after the SEC classified it as an unregistered security, forcing investors to distance themselves from the project. As ADA is trading at a crucial $0.3 support level, this raises fears of a possible bearish turn in the coming hours.
Cardano’s TVL continues to rise despite falling price
Cardano (ADA) has made waves not because of its price action, but because of an entirely different metric: the Total Value Locked (TVL). Despite a declining price trend, Cardano’s TVL has been on a steady upward trajectory, indicating a growing level of confidence and interest in the platform.
According to data from DeFiLlama, Cardano’s TVL has risen consistently over the past quarter, recording an impressive increase of nearly 30%. The TVL now stands at $178.6 million, a significant jump from early 2023 levels of around $50 million. This represents remarkable growth in a relatively short space of months.
TVL, or Total Value Locked, is a critical metric in the decentralized finance (DeFi) industry. It represents the total amount of assets deployed or locked into a blockchain’s smart contracts, serving as an indicator of the network’s popularity and usefulness.
In the case of Cardano, the TVL has been constantly rising even though the token price is on a downward trend. This increase suggests that more users are locking their resources into Cardano’s DeFi protocols, indicating growing confidence in the platform’s long-term potential.
What’s next for the ADA price?
Cardano is currently experiencing a fierce tug-of-war between bullish and bearish forces below the 200-day EMA. Bears attempted multiple times to drop the ADA price below the crucial $0.3 support line, but failed as bulls moved near the lower levels to defend a decline. At the time of writing, the ADA price is trading at $0.304, down more than 0.55% in the past 24 hours.
The slight drop in the 20-day EMA and the RSI hovering below the midpoint do not give buyers or sellers a clear advantage. This situation could turn in the bears’ favor if the price drops below $0.3, potentially dragging the price towards $0.27-$0.29. The ADA price may hover around this region for a while before triggering an upside correction.
On the other hand, if buyers manage to push the price above $0.32, it would indicate that the bulls have regained control and that ADA is poised for an uptrend. This could send the ADA price to the next $0.34 resistance. However, bears are expected to put up strong resistance at this level.