Cardano (ADA) Price Dip Masks Booming On-Chain Activity: Report

Cardano’s ADA token is down 7% today, trading around $0.55. This pullback comes on the heels of ADA hitting resistance around $0.65 last week before profit-taking brought the price back down. However, Cardano investors likely shouldn’t be too worried, as the overall crypto market is also down, with Bitcoin and Ethereum dropping 2% and 3% respectively.

According to technical analysis from altFINS, Cardano remains in a short, medium, and long-term uptrend across all timeframes. However, momentum has possibly peaked for now, as evidenced by declining MACD histogram bars. This suggests bullish momentum may be weakening in the near term.

Source: altFINS – Start using it today

Key support and resistance levels to watch, per altFINS, are the $0.46 support zone which also coincides with previous resistance turned support, as well as the $0.65 resistance level ADA hit last week. If price breaks back above $0.65,continuation of the uptrend towards $0.75 is likely. A pullback towards $0.46 could also provide a good area for swing entry in the uptrend.

Cardano DeFi Activity Explodes, TVL Reaches $431M

Beyond price action, Cardano has seen extremely robust growth in decentralized finance (DeFi) activity and total value locked (TVL). According to DeFiLlama, Cardano’s TVL has skyrocketed 180% in recent months, reaching $431 million. This phenomenal growth now places Cardano as the 12th largest DeFi ecosystem.

Celebrate Dogecoin and Make Big Gains with Doge2014!

Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!

Show more +

Driving this expansion are leading Cardano DeFi protocols like decentralized exchange Minswap, lending platform Liqwid, and synthetic assets protocol Indigo. Minswap and Liqwid now have $94 million and $47 million locked, while Indigo boasts over $100 million on its own.

As both price pullbacks and record-breaking DeFi adoption continue, Cardano solidifies itself as a formidable challenger to Ethereum and Solana in the world of decentralized finance. The coming year is likely to see even greater growth in both user activity and ADA’s market performance as development on the blockchain charges full speed ahead.

You may also be interested in:

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!

CaptainAltcoin
Logo