In recent months, Cardano (ADA), the Blockchain platform renowned for its groundbreaking decentralized finance (DeFi) solutions, has been achieving notable progress.
Although the crypto market is currently near a red zone, the Cardano network is showing bullish sentiment amid a sell-off. Investors are now focusing more on potential altcoins, as Bitcoin and Ethereum prices fail to meet bullish expectations.
Recently, ADA bulls are putting an upward push on Cardano’s DeFi activities, which may soon act as a catalyst to push the altcoin’s price above its monthly resistance levels.
ADA TVL Reaches 400 Million
The Cardano DeFi ecosystem is steadily approaching a significant milestone, with nearly 400 million ADA, the native cryptocurrency of the Cardano network, locked in full value.
As of May 19, the current Total Value Locked (TVL) is 398.55 million ADA, equivalent to approximately $148.55 million, according to data from DeFiLlama. Additionally, it should be noted that the total ADA locked briefly exceeded 400 million ADA on May 14, though it fell back shortly thereafter.
Furthermore, there are indications from other sources that Cardano has already passed the milestone of 400 million ADA in total value locked. Total Value Locked (TVL) denotes the amount of cryptocurrency that is secured within smart contracts in the DeFi ecosystem, acting as an indicator of overall system activity and liquidity.
Cardano’s remarkable TVL of 400 million ADA shows the growing confidence and enthusiasm around the platform’s DeFi solutions.
Furthermore, there is a recent inflow of funds ($154) into the wallets of major ADA holders, marking the most substantial increase since early May. It is crucial to recognize, though, that this activity does not inherently guarantee a positive outcome.
What’s Next for the ADA Token?
During the previous week, ADA tried to break above the crucial resistance level at $0.38, but it fell short. The price seems to be consolidating within the range of $0.368 to $0.375, indicating the possibility of an imminent turning point.
The support level at $0.365 is of significant importance and is unlikely to be tested given the enthusiasm of the buyers. to acquire the altcoin during pullbacks. However, despite their efforts, the bulls have so far failed to break the key resistance level of $0.38.
Looking at the 4-hour price chart, the ADA price has faced a strong rejection near the EMA200 trend line at $0.38, pushing the price below its current Fibonacci level of 38.6%. The bears have now sent the price below the EMA100 level, which suggests that the bulls are losing confidence.
The ADA price is expected to soon test the support at $0.365 and start a rise above $0.38, which will result in a smooth bullish rally to $0.394.
According to the CryptoPredictions website, the ADA Price is forecasted for today (20.05.2023) to be in the $0.31543232683384 – $0.46387106887329 price range. Cardano is predicted to end today at $0.37109685509863.
It is worth noting that Cardano started in May 2023 at $0.39825922289073 and is predicted to finish the month at $0.27532996272923. During May, the maximum forecasted ADA price is $0.63881174494579 and the minimum price is $0.27532996272923.
By Audy Castaneda