.png)
Cardano Faces Low DeFi Activity as Bearish Threat Continues: Here’s the Next ADA Price Trend
The altcoin market crashed after Bitcoin fell below $100,000. This happened when Trump introduced new tariffs, including a 25% tax on imports from Canada and Mexico and a 10% tax on Chinese products. This caused threats of retaliation from these countries and upset global markets. As Cardano now sees a decline in its DeFi activities, there’s an increase in negative pressures. This could keep the price of ADA within a limited range.
Cardano’s Total Value Locked Drops
The price of Cardano (ADA) has dropped by 15% over the past week as the cryptocurrency market faces tough conditions. According to Coinglass, Cardano saw more than $33 million in total liquidations, with around $27.7 million of that coming from investors closing their long positions in the last 24 hours.
The recent market crash has plunged Cardano’s defi activity. DeFiLlama reports that the total value locked (TVL) in the Cardano network has plummeted to $355 million from a high of $593 million earlier this year. This means the network has seen a loss of about $238 million in assets.
This drop is partly due to the ongoing decline in Cardano’s price. The value has also fallen in terms of ADA tokens, dropping to 445 million from a peak of 585 million this year.
This declining activity could fuel Cardano’s bearish trend. However, traders need to watch out for an uptick in DeFi activity, as that could coincide with a rally.
Last week’s launch of the Plomin hard fork has Cardano supporters excited about its potential effects on ADA accumulation and price trends. Additionally, the activity of large ADA holders is crucial, as their significant purchases could boost market sentiment.
Also, the correlation between ADA and Bitcoin could positively influence ADA in the mid-to-long term. With Bitcoin stabilizing around $100K after its recent sell-off, there’s hope that Cardano will do the same soon.
Is ADA Price Flashing ‘Buy the Dip’ Opportunity?
As the ADA price finally made a downward correction after its strong upswing for over the last few weeks, investors are preparing to hop in. As ADA forms a dip in the price chart, whales find it an opportunity to accumulate more. The daily price chart shows that ADA price witnessed an upward correction after dropping to the low of $0.5. As of writing, ADA price trades at $0.79, dropping over 0.8% in the last 24 hours.
Buyers are attempting to hold the price at the $0.80 level, but sellers might drive the price down, resulting in the ADA/USDT pair retesting the $0.50. It is expected that ADA price might face strong resistance around $0.8. If surpassed, we might see its price back above $1.
If the price drops from $0.8 again, it could fall back to around $0.50 and might fluctuate between these two levels for some days.
Source CoinPedia: Cardano Faces Low DeFi Activity as Bearish Threat Continues: Here’s the Next ADA Price Trend