- The price of Cardano (ADA) printed a gain of more than 2% to trade at $0.3807 at press time.
- ADA’s recent gain saw it flip the resistance level at $0.3738 into support over the past 24 hours.
- Traders and investors may want to wait for ADA to close a daily candle above $0.3738 before going long on the altcoin.
According to data provided by DeFiLlama, Cardano has experienced a remarkable surge of 91% in decentralized exchange (DEX) volume within the past week. The volume of DEX transactions on Cardano has reached an impressive $68.5 million.
This surge can be attributed to a significant increase in activity on Cardano-based DEX platforms, most notably Minswap, which witnessed a staggering 99.72% weekly change. Minswap, serving as the leading DEX on Cardano, accounted for the majority of the platform’s volume, boasting a 24-hour volume of $6.91 million and a seven-day volume of $60.52 million. This remarkable figure represents approximately 90.4% of the total DEX volume on the Cardano network.
While other DEX platforms on Cardano, such as WingRiders and SundaeSwap, also made contributions to the overall volume, their impact was comparatively smaller. Despite the impressive growth in DEX volume, the total value locked (TVL) on Cardano stands at $91.27 million, representing a mere 0.69% of the cumulative TVL across all platforms. In contrast, Ethereum maintains its dominance in the decentralized finance (DeFi) landscape, boasting a TVL of $7.8 billion, which accounts for approximately 37.6% of the total TVL. Binance Smart Chain (BSC) and Arbitrum follow with 27.98% and 14.67% respectively.
These figures highlight the significant surge in DEX volume on Cardano, specifically driven by the activity on Minswap. While Cardano’s TVL remains relatively small compared to platforms like Ethereum, it underscores the growing interest and engagement within the Cardano ecosystem. As the blockchain industry continues to evolve, it will be intriguing to monitor how Cardano’s DEX volume and TVL develop in the future and whether it can further solidify its position in the DeFi space.
Cardano (ADA) Current Market Standing
Cardano (ADA) is ranked as the seventh biggest project in terms of market cap, according to CoinMarketCap. It experienced a 24-hour price increase of 2%, taking its price up to $0.3807 at press time. The Ethereum-killer’s market cap stood at $13.278 billion as a result.
Meanwhile, ADA’s 24-hour trading volume stood at $227.406 million, following a 24-hour increase of 86.39%. Furthermore, the price of ADA was nearer to its 24-hour high of $0.3859, while the altcoin’s daily low stood at $0.3687.
The recent increase in ADA’s price had pushed its already-positive weekly performance deeper into the green. As a result, the altcoin’s weekly price performance stood at +4.74%.
Cardano (ADA) Technical Overview
4-hour chart for ADA/USDT (Source: TradingView)
Over the past 24 hours, ADA’s price was able to break above the key resistance level at $0.3831 and reached a high of $0.3863. The altcoin was unable to close a 4-hour candle above this price point, however, and pulled back to below the resistance level, where it continued to trade at press time.
Technical indicators on the 4-hour chart suggested that ADA had entered into a short-term bullish cycle. The 9 EMA line on the 4-hour chart was positioned bullishly above the 20 EMA line, and the RSI line on the 4-hour chart was positioned bullishly above the RSI SMA line.
Furthermore, these technical indicators suggested that ADA’s price would continue to rise in the next 24-48 hours as well. The gap between the 9 EMA and 20 EMA lines was growing larger, which signaled that short-term bullish momentum was growing. Meanwhile, the RSI line was sloped positively toward the overbought territory.
Should the bullishness indicated by these two indicators be validated, ADA’s price will have a clear path to the next major resistance level at $0.3966. On the other hand, ADA failing to close a 4-hour candle above the aforementioned $0.3831 mark will put the altcoin’s price at risk of dropping to the nearest support level of $0.3721 in the next 24-48 hours.
Daily chart for ADA/USDT (Source: TradingView)
ADA’s price had broken out of a medium-term wedge pattern recently. In the 3 days that followed, the altcoin’s price had then gone on to flip the resistance level at $0.3738 into support. Bears were, however, attempting to push ADA’s price back below the recently-flipped level, which was evident by the wick present on today’s daily candle.
Despite the sell pressure that was present on ADA’s daily chart, a bullish technical flag was on the verge of triggering, as the 9-day EMA line was looking to cross above the 20-day EMA line at press time. Should this cross happen in the next 24 hours, ADA’s price will likely rise to $0.4018 in the next 2 days.
The bullishness indicated by the 9 EMA and 20 EMA lines was contradicted by the bearishness displayed by the daily RSI indicator, however. At press time, the daily RSI line on ADA’s chart was bearishly sloped toward the oversold territory, which suggested that bears would successfully push ADA’s price down to close today’s trading session below $0.3738.
The bullish confirmation will be validated if today’s daily candle closes above the $0.3738 mark. Conversely, a close below this price point will put ADA’s price at risk of dropping to the next support level at $0.3519 in the next few days.
Disclaimer: The views and opinions, as well as all the information shared in this price prediction, are published in good faith. Readers must do their 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.
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