Cardano Network Sees Increased Bullish Activity! Will ADA Price Make a 180 Flip?
Though the crypto market is currently hovering near a red zone, the Cardano network shows bullish sentiment amid a massive selloff. Investors are now focusing more on potential altcoins as Bitcoin and Ethereum prices fail to meet bullish expectations. Recently, ADA bulls are making an upward push in Cardano’s DeFi activities, which may soon act as a catalyst in pushing the altcoin’s price above its monthly resistance levels.
ADA’s TVL Touches 400 Million
In recent months, Cardano (ADA), the blockchain platform renowned for its groundbreaking decentralized finance (DeFi) solutions, has been achieving notable progress. The Cardano DeFi ecosystem is steadily approaching a significant milestone, with nearly 400 million ADA, the native cryptocurrency of the Cardano network, locked in total value.
As of May 19, the current total value locked (TVL) stands at 398.55 million ADA, equivalent to approximately $148.55 million, according to data sourced from DeFiLlama. Furthermore, it is noteworthy that the total ADA locked briefly surpassed 400 million ADA on May 14, although it retraced shortly thereafter.
In addition, there are indications from other sources that Cardano has already exceeded the milestone of 400 million ADA in total value locked.
Total value locked (TVL) denotes the quantity of cryptocurrency that is secured within smart contracts in the DeFi ecosystem, acting as a gauge of the system’s overall activity and liquidity. Cardano’s remarkable TVL of 400 million ADA showcases the increasing trust and enthusiasm surrounding the platform’s DeFi solutions.
Moreover, there is a recent influx of funds ($154) into the wallets of major ADA holders, representing the most substantial increase since early May. Nevertheless, it is crucial to acknowledge that this activity does not inherently guarantee a positive outcome.
What’s Next For ADA Token?
During the previous week, ADA made an attempt to surpass the crucial resistance level at $0.38 but fell short. As of the time of writing, the price seems to be consolidating within the range of $0.368 to $0.375, indicating the possibility of an imminent decisive moment.
The support level at $0.365 holds significant importance and is unlikely to be tested, given the eagerness of buyers to acquire the altcoin during pullbacks. However, despite their efforts, the bulls have thus far been unable to breach the key resistance level of $0.38.
Analyzing the 4-hour price chart, ADA price has faced a strong rejection near the EMA200 trend line at $0.38, pushing the price below its current 38.6% Fib level. Bears have now sent the price below the EMA100 level, hinting that bulls are losing confidence.
It is expected that ADA price will soon test support at $0.365 and initiate a surge above $0.38, resulting in a smooth bullish rally to $0.394.