Cardano (ADA) price appears to be in a tailspin after a big run at the start of this year. ADA coin is currently trading 29% below its yearly high. The latest analysis reveals more downside for the digital asset as crypto markets experience a massive sell-off.
On Thursday, crypto markets rebounded slightly as the BTC price kept trading around $26,500. Cardano price also rebounded from the fresh weekly lows and was up 2.26% at the start of its New York session. At the time of writing, ADA was changing hands at $0.33.
Total Locked Value (TVL) On Cardano Surges
The DeFI TVL tracking site, DeFi Llama, reveals that the Total Locked Value (TVL) on the Cardano blockchain has constantly been increasing since the start of 2023. During this time, the TVL has surged by more than 200%. Nevertheless, the current TVL of $162 million is still 50% down from its all-time high.
This increase in TVL can be attributed to increased network activity on Cardano blockchain as the ecosystem is growing. As per the stats, Miniswap is currently the biggest decentralized application on Cardano with 34% share in the total locked value (TVL). There has been a slight decrease in TVL in the past few days due to a decline in Cardano price.
Cardano Price Makes Head & Shoulders
The ADA price chart on a daily timeframe suggests that the price is forming a head & shoulders pattern, which is considered one of the most bearish reversal patterns. The breakdown below $0.37 confirmed this bearish pattern and since then the price has tanked almost 15%.
The Cardano price prediction appears to be bearish as the measured move from the H&S breakdown gives us a target of $0.30, which is 10% below the current price level. The only way to avoid this bearish outlook is to break above the $0.40 resistance soon which seems highly unlikely in the current market conditions.
I’ll keep posting my updated outlook on Cardano in my free Telegram group, which you’re welcome to join.
