While the crypto market is currently hovering near a red zone, the Cardano network is showing bullish sentiment amid a massive sell-off. Investors are now focusing more on potential altcoins as Bitcoin and Ethereum prices fall short of rising expectations. Recently, ADA bulls have provided upward momentum to Cardano’s DeFi business, which may soon act as a catalyst to push the price of the altcoin above its monthly resistance levels.
ADA’s TVL hits 400 million
In recent months, Cardano (ADA), the blockchain platform known for pioneering decentralized finance (DeFi) solutions, has made remarkable progress. The Cardano DeFi ecosystem is steadily approaching a major milestone, with nearly 400 million ADA, the Cardano network’s native cryptocurrency, locked in total value.
As of May 19, the current total value locked (TVL) stands at 398.55 million ADA, which equates to approximately $148.55 million, according to data sourced from DeFiLlama. Furthermore, it is noteworthy that the total number of locked ADA briefly surpassed 400 million ADA on May 14, although it was withdrawn soon after.
In addition, there are indications from other sources that Cardano has already passed the milestone of 400 million ADA in total value.
Total Value Locked (TVL) indicates the amount of cryptocurrency secured within smart contracts in the DeFi ecosystem and acts as a measure of the system’s overall activity and liquidity. Cardano’s remarkable TVL of 400 million ADA demonstrates the increasing confidence and enthusiasm surrounding the platform’s DeFi solutions.
In addition, there has been a recent inflow of money ($154) into the portfolios of major ADA holders, marking the largest increase since early May. Nevertheless, it is critical to recognize that this activity does not inherently guarantee a positive outcome.
What’s Next for ADA Token?
This past week, ADA made an attempt to surpass the crucial $0.38 resistance level, but fell short. At the time of writing, the price appears to be consolidating within the $0.368 to $0.375 range, pointing to the possibility of an impending decisive moment.
The $0.365 support level is highly significant and unlikely to be tested given the eagerness of buyers to acquire the altcoin during pullbacks. However, despite their best efforts, the bulls have so far failed to break the key resistance level of $0.38.
Analyzing the 4-hour price chart, the ADA price faced a strong rejection near the $0.38 EMA200 trendline, pushing the price below the current 38.6% Fib level. Bears have now sent the price below the EMA100 level, suggesting that bulls are losing confidence.
The ADA price is expected to test support at $0.365 soon and initiate an increase above $0.38, resulting in a smooth bullish rally to $0.394.