Cardano (ADA) Price to Experience Short-Term Rally Before Potential Return to Lower Lows
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The Cardano (ADA) ecosystem has displayed a gradual recovery from recent regulatory scrutiny in the United States. Despite the challenges, Cardano’s decentralized finance (DeFi) sector has witnessed a steady increase in total value locked (TVL), underscoring the resilience of this prominent blockchain network. Data from DefiLlama reveals that as of June 27, the Cardano network had approximately $151.91 million locked in its DeFi projects. Notable DeFi projects on Cardano include MinSwap, Liqwid, Indigo, and VyFinance.
Cardano Price Action
A recent analysis by a Cheeky Crypto YouTube channel analyst shed light on the current state of Cardano’s (ADA) price movement. While the overall trend appears bearish, the analyst suggests a potential retest towards 30 cents is highly plausible. It is worth noting that the 1-hour 200 MA (moving average) has acted as a support level, although the 50 MA indicates further potential downside.
According to the Cheeky Crypto analyst, two trade opportunities may arise in relation to Cardano (ADA). For a bullish outlook, the suggested strategy involves placing a stop loss at around 27 cents, with a target price of approximately 32 cents.
Conversely, the analyst also outlines a scenario in which Cardano (ADA) could move towards 18 cents. In this case, a stop loss of around 30 cents is advised. However, finer confirmation on lower time frames is necessary for a more precise entry level.
As of now, Cardano holds a market capitalization of approximately $9.7 billion and a daily trading volume of about $173 million. These figures position Cardano as a medium-cap altcoin within the cryptocurrency market.
By showing resilience in the face of regulatory challenges and witnessing a gradual increase in DeFi total value locked, Cardano (ADA) continues to assert its position as the seventh-largest blockchain network by market capitalization.
Filed under: Bitcoin - @ June 27, 2023 10:26 am