Cardano (ADA) just teased tapping the 70-cent mark last week, but now, it seems to be struggling to maintain its 60-cent position. What gives?
Cardano Now
Before proceeding, let’s take a glimpse at the present state of Cardano to better illustrate its movements as of late. After riding high near the $0.70 line, ADA bombed to $0.58 as of this writing at 12:00 AM UTC on Monday. The numbers are over 4% down in the 24-hour chart and a 2% dip in the weekly frame.
The trading volume of ADA in the daily frame is down by 8% as only $561.87 million worth moved between crypto wallets out of its total market cap of $20.557 billion.
If there’s any consolation, ADA is approximately 60% up on a month-on-month basis and has grown 115% year to date.
Why Did ADA Slump?
The decline in Cardano’s price last week can be mainly attributed to investors cashing out from its massive pump. The overbought condition of ADA on the shorter timeframe when the RSI reading crossed the 70 bracket also triggered them to secure their profits. On a side note, a 70 score in the RSI indicates the asset may have been overvalued and may be subject to trend reversal or correction.
Cardano appears to have been affected by the recent performance of Bitcoin (BTC), too. After leading a crypto rally in the past couple of weeks that saw the leading digital coin by market cap touch the $44K range, the weekend saw it shed some of its value by over $3K heading to Monday midnight.
The primary factor that may have stalled the momentum of BTC and altcoins is the apparent lack of news regarding the developments of spot Bitcoin exchange traded funds (ETFs). Time and again, it has been proven that Bitcoin has a 40% probability of moving with the hype and the prospects of US spot Bitcoin ETFs have been fueling them so far. Meanwhile, altcoins like ADA tend to follow the path mapped by BTC in the absence of major events happening in its own ecosystem.
Optimism in Cardano
The crypto community is approaching 2024 with a positive outlook regarding the Bitcoin ETF filings in the US. With that, the subsequent rise in Bitcoin price may also push the major altcoins up, including Cardano. Well, that’s only the public consensus.
Looking closely at the metrics of ADA, however, reveals a more exciting scenario. Cardano’s total value locked (TVL) has risen from $188.65 million on October 17 to $409.41 million based on the prevailing onchain data of DefiLlama. In general, this signifies a secure platform for ADA and a show of strong investor confidence.
Another noteworthy analysis on Cardano recently came from Tyler Strejilevich. The analyst claimed ADA may be on its way to 6,000%. His forecast was anchored on the same trend going to a bullish weekly cross pattern observed in June 2020 when the coin peaked at the same rate.
