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Cardano price retests key resistance as DeFi TVL hits record

  • Cardano price retested the key resistance level at $0.2972 on Tuesday. 

  • DeFi TVL in Cardano’s ecosystem jumped to a record high.

Cardano price has moved sideways in the past few weeks even as other coins like Bitcoin, AAVE, and Compound surged. ADA token was trading at $0.2972, where it has been for a while. This price is about 27% above the lowest level in June and 37% below the highest point in May this year.

DeFi TVL hits record

Cardano has become one of the most underperforming large-cap cryptocurrencies in the past few weeks. This performance is mostly because of the recent decision by the Securities and Exchange Commission (SEC) to label it a security.

In the aftermath, Robinhood, one of the biggest companies in the financial services industry, decided to delist the coin. If the SEC’s lawsuit against the two exchanges prevails, it means that Americans will not have access to Cardano.

The daily volume of Cardano traded in centralized exchanges has been falling in the past few weeks. It stood at $171 million on Tuesday, down from a peak of over $1 billion in June.

Despite this performance, Cardano’s ecosystem is doing well. Data shows that the total value locked (TVL) in its DeFi ecosystem soared to over 702 million ADA tokens, a record high. The figure started the year at around 265 million ADA. In dollar terms, Cardano has a TVL of over $202 million. 

The biggest DeFi dApps in Cardano’s ecosystem are Minswap, Indigo, Liquid, and VyFinance among others. TVL is an important metric that measures the value of digital assets locked in a blockchain. 

At the same time, Cardano’s NFT ecosystem is not doing all that well. Total Cardano NFT sales came in at over $8.6 million in June from the previous $8.23 million. While these numbers are good, sales stood at $10 million in March and $23 million in October last year.

Cardano price prediction

The daily chart shows that the ADA price has been in a strong bearish trend for a while. This decline saw it retreat below the important support $0.2972, the lowest level in March this year. It has now retested this level, making a bearish break and retest pattern. Cardano remains below the 25-day and 50-day moving averages.

It has also formed a head and shoulders and a bearish pennant patterns. Therefore, the coin will likely have a bearish breakout in the coming days. If this happens, the next level to watch will be last month’s low of $0.23277

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