Coin cryptocurrency Cardano on the background of a stack of coins. ADA
Cardano (ADA) price is hanging by a thread after dropping below a critical level on its chart. The smart contract cryptocurrency is currently trading 90.37% below its 2021 all-time high. After a strong rebound from June lows, ADA price is once again trending lower.
On Thursday, altcoins had another losing day as the BTC price failed to breach $30,000. Cardano (ADA) lost its yesterday’s gains and was down 1.36% till press time. Traders remained cautious today due to the release of July CPI data, which usually results in massive volatility spikes.
A look at the total locked value (TVL) on the Cardano blockchain suggests that the TVL hit its yearly peak of $209 million in July. Since then, there has been a significant decrease in TVL, and it now stands at $180 million. The slump in ADA price could be a reason behind this decrease.
Cardano price has remained unfazed by the increased network activity. The slow development has made many investors lose their interest in the project. Nevertheless, ADA still remains the 9th biggest digital asset in terms of market capitalization.
As visible on the following ADA price chart, the coin has been in a tailspin since its rejection from the 200 MA in July. Since then, the price has corrected more than 21%. The price is currently consolidating around the March 2023 low of $0.30.
Cardano price will flip extremely bearish if it gains expectance below the $0.30 level. In this case, the bears may target the June low of $0.22, which is more than 25% below the current price level. Currently, the bullish divergences on RSI and MFI are signaling a short-term bounce.
I’ll keep posting my updated outlook on Cardano in my free Telegram group, which you’re welcome to join.
This post was last modified on Aug 10, 2023, 15:08 BST 15:08