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ADA TVL Reaching New Highs Is Extremely Bullish Sign: Trader

Published 15/08/2023, 08:55
ADA TVL Reaching New Highs Is Extremely Bullish Sign: Trader
ADA/USD
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  • According to Dan Gambardello, ADA’s TVL reaching new highs could be an extremely bullish sign for the altcoin.
  • Over the past 24 hours of trading, ADA’s price dropped by 0.45%, which left it trading at $0.2892.
  • From a technical perspective, ADA continued to trade below the 9-day EMA line at press time.

Cardano’s (ADA) Total Value Locked (TVL) has reached a new all-time high according to a Twitter post shared by cryptocurrency trader and notorious ADA stan, Dan Gambardello, earlier today. The post pointed out that the Ethereum-killer’s TVL stood at 616 million ADA.

Gambardello explained his excitement surrounding ADA’s high TVL as he believes it is “the most bullish leading indicator in all of crypto.” The hype surrounding ADA’s record-high TVL has not yet been reflected in the cryptocurrency’s price as CoinMarketCap indicated that ADA’s price dropped by 0.45% over the past day of trading.

This left the altcoin trading hands at $0.2892 at press time, which was a bit closer to its daily low of $0.2885 than its 24-hour high of $0.2921. Meanwhile, ADA’s 24-hour trading volume fell along with its price by more than 16%. This left its intraday volume standing at around $122,846,630.

Additionally, the Ethereum-killer’s weekly performance was still down by 1.10% following its latest price drop. ADA’s market cap of $10,131,822,627 ranked it as the 9th largest cryptocurrency. This meant that it was sandwiched between Solana (SOL) in the 8th spot and Tron (TRX) in the 10th position.

Daily chart for ADA/USDT (Source: TradingView)

From a technical perspective, ADA continued to trade below the 9-day EMA line at press time. Furthermore, the 9, 20, and 50 EMA lines on the altcoin’s daily chart indicated that short-term and medium-term momentum was still in favor of sellers, which may result in ADA’s price dropping in the next 24-48 hours.

Should this bearish thesis play out, ADA’s price may retest the support level at $0.2760 in the next couple of days. If it drops below this key mark, then it will be at risk of dropping to $0.2585 should the sell pressure continue. However, a daily candle close above the 9-day EMA line at around $0.2931 within the next 48 hours will invalidate this bearish thesis.

In this scenario, ADA’s price may look to flip the $0.2995 resistance into support in the following few days. This will then also clear a path for ADA’s price to rise to $0.3210 in the week after the break above $0.2995.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post ADA TVL Reaching New Highs Is Extremely Bullish Sign: Trader appeared first on Coin Edition.

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