The recent crash of altcoins has been a major setback for many cryptocurrencies, and Cardano is no exception. The SEC’s security claims have sparked a wave of uncertainty in the market, leading to a widespread sell-off. This sell-off has been particularly hard on altcoins, which have seen their prices plummet. Amidst this turmoil, Bitcoin’s dominance continues to grow, casting a long shadow over altcoins, largely affecting the Cardano (ADA) price.
The developments of Cardano Network give bullish promises
Recent US SEC lawsuits against Binance and Coinbase, declaring Cardano a collateral, led to the price falling to $0.23. Despite this, some of Cardano’s stats hit yearly highs, indicating greater adoption, according to data from Santiment. These stats can indicate whether or not Cardano has reached its price bottom.
Santiment reports that Cardano’s trading volume has recently increased, reflecting growing network activity and interest in the cryptocurrency. This increased trading volume indicates active involvement of traders in the asset.
Cardano’s daily active addresses reached an annual high, indicating increased user activity. In addition, social dominance also increased, indicating a very active market. Despite the price drop, these stats show increased trades and interest, possibly pointing to a market bottom for Cardano.
Data from DeFi Llama reveals a $50 million drop in Cardano’s Total Value Locked (TVL) since June 5, from its May 2022 high of $183.06 million. However, in terms of ADA, the TVL stands at an all-time high of over 507 million, a 250% increase since the beginning of the year. This resilience has been attributed to network enhancements, including the May launch of Hydra, Cardano’s scalability solution.
What to expect from ADA Price Next?
Cardano’s recovery recently faced a roadblock near $0.28, a clear indication that bearish traders are fighting a strong battle to sustain the current bearish rally. At the time of writing, the ADA price is trading at $0.258, down more than 5.8% in the past 24 hours.
If the bulls fail to push the price above the $0.29 resistance level, it is likely that the price of ADA will take a downward turn and slide towards the $0.2365 support level. If the price bounces back strongly from this level, it could cause the ADA price to fluctuate between $0.24 and $0.30 for several days, creating a range-bound scenario.
However, if the bulls manage to push the price above $0.3, it could indicate that the recent downtrend has come to an end, at least in the short term. This could pave the way for a possible rise in the 100-day exponential moving average (EMA) which stands at $0.34.
If momentum continues, the price could rise further to reach a critical resistance of $0.36. This would be a positive sign for Cardano, indicating a potential shift in market sentiment from bearish to bullish.