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.

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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.

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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!

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