Cardano: ADA Seeks Recovery As Trading Activity Surges


Cardano
(ADA),
the
smart
contract
platform,
has
been
facing
a
rough
patch
recently.
While
the
broader
DeFi
sector
has
seen
an
uptick
in
DEX
volumes,
Cardano’s
Total
Value
Locked
(TVL)
has
plummeted,
raising
concerns
about
the
health
of
its
ecosystem.


Related
Reading


DeFi
Activity
And
NFT
Market
Slump

Despite
the
surge
in
DEX
volumes
across
the
crypto
landscape,
Cardano’s
TVL
has
witnessed
a
significant
decline,
dropping
from
$430
million
to
$230
million,
according
to
data
from
Artemis,
a
leading
blockchain
data
provider.
This
suggests
a
lack
of
interest
in
dApps
built
on
the
Cardano
network,
potentially
hindering
its
long-term
growth
prospects.

How To Get Free Crypto  

The
NFT
space
on
Cardano
has
also
taken
a
hit.
Popular
NFT
collections
have
seen
a
dramatic
decrease
in
floor
price
and
overall
trading
volume
over
the
past
month.
This
waning
interest
in
Cardano
NFTs
could
further
dampen
investor
sentiment
and
negatively
impact
the

price
of
ADA.

Source:
Artemis


Cardano:
Technical
Indicators
Flash
Warning
Signs

The
technical
outlook
for

ADA
is
currently
bearish.
The
price
has
been
trending
downwards
over
the
past
few
weeks,
forming
multiple
lower
lows
and
lower
highs.
Additionally,
key
technical
indicators
like
the
RSI
(Relative
Strength
Index)
and
CMF
(Chaikin
Money
Flow)
are
pointing
towards
declining
bullish
momentum
and
money
flow
into
ADA.

ADA
sentiment.
Source:
CoinCodex

Beyond
the
immediate
price
and
DeFi
woes,
other
factors
raise
concerns
about
Cardano’s
future.
The
velocity
of
ADA,
indicating
the
frequency
of
token
exchange,
has
fallen
significantly,
suggesting
decreased
trading
activity.
Additionally,
the
MVRV
ratio,
a
measure
of
profitability
for
token
holders,
has
also
dropped,
implying
that
most
ADA
addresses
are
currently
underwater.


Cardano
Price
Forecast

While
Cardano
remains
a
prominent
player
in
the
blockchain
space,
the
recent
developments
highlight
the
challenges
it
faces.
The
combination
of
declining
price,
waning
DeFi
and
NFT
activity,
and
negative
on-chain
metrics
suggests
a
potential
for
further
downside
in
the
short
term.

Coinbase Banner  
ADA
market
cap
currently
at
$16
billion.
Chart:

TradingView.com

Cardano
is
expected
to
experience

a
modest
increase
in
price,
reaching
$0.47
by
June
30,
2024,
indicating
a
predicted
rise
of
nearly
5%.
However,
it’s
important
to
consider
various
technical
indicators
and
market
sentiment
to
assess
the
potential
movement
of
the
asset.


Related
Reading

The
crypto’s
bearish
sentiment
may
be
influenced
by
factors
such
as
market
trends,
news
events,
or
technical
analysis
patterns.
Additionally,
the
Fear
&
Greed
Index
stands
at
73,
indicating
a
state
of
Greed
among
market
participants.
This
suggests
that
investors
may
be
more
inclined
to
take
risks
or
engage
in
speculative
behavior,
which
could
potentially
impact
Cardano’s
price
movement.

It’s
noteworthy
that
ADA
has
experienced
significant
price
fluctuations
in
the
past.
Its
highest
price
of
$3.10
was
reached
on
September
2,
2021,
marking
its
all-time
high,
while
its
lowest
price
of
$0.017
was
recorded
on
October
1,
2017,
representing
its
all-time
low.
These
historical
price
points
highlight
the
volatility
and
potential
for
significant
price
swings
within
the
Cardano
market.


Featured
image
from
ReddSparks
Crypto
Blog,
chart
from
TradingView

Go to Source
Author: Christian Encila


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