- Cardano Total Value Locked (TVL) surged from $172.78 million to $238.5 million, marking a 38% increase.
- Despite a surge in Cardano’s TVL, ADA’s price remains hindered by a downsloping trendline.
Cardano’s (ADA) recent price rally has encountered a significant hurdle amid the recent market resurgence. Despite Bitcoin鈥檚 surge from the $55,000 mark to the $68,000 level in the last two weeks, which saw altcoins matching the effort, ADA has struggled to surpass key resistance.
Nevertheless, Technical indicators and key metrics continue to show signs of hope for the ADA community.聽
聽Cardano鈥檚 Total Value Locked Surge
A key factor to consider is the recent surge in Total Value Locked (TVL) on the Cardano ecosystem which saw a leap from $172.78 million to $238.5 million, marking a 38% increase. This key metric, which typically means the total value of assets locked in decentralized applications (dApps) has seen a significant surge. In general, a rise in TVL reflects increased adoption and user confidence in the Cardano blockchain.聽
A rise in Cardano鈥檚 TVL is rather a beacon of hope as it signals that the Cardano ecosystem as a whole is strengthening, even though ADA鈥檚 price is yet to reflect this fully. A breakout above the overhead trendline could turn this resistance into a new support level, potentially driving ADA to $0.52 and then to $0.56.聽
Despite the broader market recovery, ADA has experienced a period of hardship.聽 After touching a low of $0.316 on July 5th, ADA experienced a bullish surge of 44%, surging to $0.457. However, this significant rally was met with resistance at a key downward trendline on the daily chart. This trendline, forming part of a descending channel, has hurdled ADA’s price for the past three months.
At the time of writing, ADA is swapping hands at $0.4215 marking a 3.57%聽 and 2.31% decline in the last 24 hours and 7 days respectively. This has left the altcoin with a market cap of $15.4 billion. Currently, ADA is trading sideways, trapped in a defined price pattern. This sideways movement sets precedent for either a potential breakout or breakdown, which will predict ADA鈥檚 short-term price movement.
Cardano鈥檚 Technical Analysis
Diving deep into ADA鈥檚 technicalities, the daily RSI stands at 54%, indicating a neutral to slightly bullish sentiment among market participants. This suggests there is a balance in selling and buying pressure.
Additionally, the upper boundary of the Bollinger Bands (BB) is ticking upward, suggesting that buyers are active and may be preparing for a potential breakout. This movement within the BB indicator often signals increased volatility and the possibility of significant price changes.
Cardano鈥檚 surge in TVL is a positive sign for the Cardano ecosystem. Additionally, its common knowledge that Bitcoin’s price trajectory is mirrored by other altcoins. Market analysts have come forward suggesting that Cardano could be on the verge of a potential bullish run.
This is after Rich Dad, Poor Dad author Robert Kiyosaki gave out a very bullish outlook for Bitcoin. According to Kiyosaki, Bitcoin could rally 426% to $350,000 by August 2024.
