Can DEX Boom Save Cardano? ADA Seeks Recovery As Trading Activity Surges
May 31 2024 - 4:20AM
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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: Political Memecoin Mania: Super Trump Token Explodes With
200% Surge 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. 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. 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. 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.
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: Are Whales Sniffing Out A Deal?
Ethereum Holdings Balloon To 30% – Details 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
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