Cardano (ADA) price has flipped bearish on all timeframes after an intense sell-off last week. While the bulls are holding up a key support level so far, they are yet to gain any momentum. The latest analysis reveals a key level on the chart which must be reclaimed by the bulls as a sign of strength.
On Wednesday, altcoins are showing some recovery as BTC price rebounded from fresh weekly lows. ADA price outperformed Bitcoin and was up 0.70% till press time. From its last week’s lows, Cardano is trading 9.5% higher.
Cardano TVL Drops 15% In August
The latest data from DeFi Llama shows that the total locked value on the Cardano blockchain fell from $188M to $160M in August. This translates into a 15% drop in less than a month. This TVL decrease can be attributed to a decline in Cardano price during the same time.
The project continues to be backed by a strong community of holders. However, the network activity is still way behind most major blockchains like Ethereum, Polygon, and Binance Smart Chain. Cardano is also often criticized for its slow development since its launch.
Cardano Price Prediction Flips Bearish
A look at the following ADA price chart reveals that the $0.22-$0.24 region is acting as a strong demand zone. After last week’s sell-off, the price retested this demand zone and bounced again. A breakdown below this strong support level would make Cardano price prediction extremely bearish.
In this cataclysmic scenario, the bears may target the ley psychological level of $0.01, which is the next major support on the monthly chart. In case of a rebound from the current level, bulls must reclaim the $0.30 resistance level.
I’ll keep posting my updated outlook on Cardano on my Twitter, where you’re welcome to follow me.