- Summary:
- Cardano price has risen by 21 percent in the last week, and has seen its DeFi TVL rise by 31 percent during the same period.
Cardano price extended its upbeat momentum on Tuesday, rising by 2.1 percent to trade at $0.748. The move signals ADA’s adamance to move to the psychological level at the $1.00 mark, a milestone level it has not touched since April 2022. The coin has gained 21 percent in the last week, beating Bitcoin’s 3.1 percent gain. In addition, it is up by 25 percent year-to-date. This has created a strong bullish undercurrent that will likely keep it on the upward trajectory.
ADA price’s gain has been accompanied by a substantial uptick in the Cardano chain DeFi activity. According to data aggregation site, DeFiLlama, the Cardano chain’s Total Value Locked (TVL) rose by 31 percent in the last week, outperforming the DeFi ecosystem’s top 29 chains. The rise in the DeFi TVL indicates increased demand for ADA coins, which typically brings tailwinds to the price.
However, CoinMarketCap data shows that ADA’s traded volume declined by 26 percent in the 24 hours preceding this writing. A decline in an asset’s traded volume when its price is on the rise signals that a slowdown in its upside momentum is likely. Therefore, that could put a lid on Cardano price if the trend continues.
According to IntoTheBlock, 34 percent of ADA holders are “out of the money. This is significant, as 72 percent of ADA investors have held it for more than a year. Therefore, if the 34 percent opt to hold their assets to leverage the current market rally, it could help prop up the price.
Cardano price prediction
Cardano price pivots at 0.732, and the upside will be in play if action stays above that level. The crypto coin will likely encounter the first resistance at 0.758. However, a stronger upward momentum will break above that level and potentially test 0.782.
On the other hand, if the price goes below the pivot mark, it will put the sellers in control. In that case, the first support could come at 0.712. However, extended bearishness could break below that level and invalidate the upside narrative. Also, the decline could extend to test 0.700.
