Cardano price moved sideways on Tuesday as its volume and volatility dropped to the lowest level since January. ADA dropped to a low of $0.3705, where it has been at in the past few days. This price had crashed by more than 20% from the highest point this year.
Investors have been focusing on the debt ceiling issues, as Democrats and Republicans disagree on how to raise the debt ceiling ahead of the June 1 deadline. Interest in Bitcoin and other cryptocurrencies has fallen to the lowest level in two years and volume of cryptocurrencies traded in most centralized and decentralized exchanges has been falling.
However, the Total Value Locked (TVL) in Cardano’s ecosystem has been growing. Data compiled by DeFi Llama shows that the TVL has jumped to $197 million, the highest level since May last year. This level is much higher than last year’s low of about $70 million.
In ADA terms, the TVL in the ecosystem has jumped to A$187 million. Most dApps in the ecosystem have seen their TVL jump in the past few weeks. They include MinSwap, Indigo, WingRiders, Liquid, and MuesliSwap among others. Additionally, the number of transactions in the ecosystem has jumped, according to data compiled by IntoTheBlock. Transaction volume rose by 205% between January and this week, with most users engaging in Cardano having between $10 and $50.
The daily chart shows that Cardano has been moving downwards in the past few days. It has fallen below the year-to-date high of $0.4628 to the current $0.3725. It has crossed the 50-day moving average, signaling that bears are taking over. Most importantly, the Average true Range (ATR) has crashed to the lowest level since January 8th of this year and volume has been falling since January 9. Therefore, the outlook of Cardano is neutral with a bearish bias. If there is a bearish breakout, the next level to watch will be at $0.2990, the lowest point on March 10.
If you are looking to buy Cardano, you can do so using eToro, an investing platform that allows you to buy cryptos, stocks, ETFs, and alternative assets like fine art and collectibles. You can also buy ADA with Public, a crypto trading platform served by Public Crypto LLC and offered through APEX Crypto.
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