- ADA, the native cryptocurrency of Cardano, is undergoing a recovery phase.
- ADA is striving to surpass and ascend beyond the $0.3 resistance level.
- The total value locked in Cardano’s DeFi ecosystem is steadily increasing.
ADA, the native cryptocurrency of Cardano, is currently undergoing a recovery phase following a dip to its lowest point of the year at $0.220 on June 12, 2023. This decline caused ADA to breach a crucial support level at $0.3, subsequently transforming it into a major resistance level. Nevertheless, a notable surge from the year’s low has propelled the price towards this resistance level as it strives to surpass and ascend beyond it.
The 4-hour chart of ADA/USD on TradingView comprehensively depicts ADA’s endeavor to regain its bullish momentum by surpassing the $0.3 price level. Multiple attempts have been made to breach this resistance, yet ADA still needs to reach the $0.3 mark during each instance.
Although ADA was initially rejected at the $0.3 price level, there has been a noteworthy development in its market performance. Upon closer examination of the 4-hour chart, it becomes evident that ADA exhibits a sideways trend while consistently forming higher lows. This particular price behavior signifies a strengthening momentum among the bullish investors, effectively preventing ADA’s price from further declining. Consequently, this has alleviated the bearish pressure on the digital asset.
Additionally, the market has a growing optimistic sentiment, exerting pressure on the resistance level at $0.3. Given the relatively smooth path above this level, a breakthrough could trigger a significant surge in the price of ADA, propelling it towards $0.35 and beyond.
In addition to the technical indicators, several other positive developments surrounding Cardano indicate that the project may be entering a highly favorable phase. One notable development is the ongoing expansion of the Cardano DeFi ecosystem. According to DeFiLlama, the total value locked (TVL) in Cardano has been steadily increasing. Currently, it stands at $166.2 million, rebounding from a decline to $130.51 million on June 11, 2023. This growth in TVL signifies a promising trend for Cardano and suggests a bullish outlook for the project.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
