- The Cardano course has recovered to $ 0.69 and shows positive signals despite falling TVLs.
- Large token sales and falling TVL increase the pressure on the cardano course and the market prospects.
Cardano (ADA) looks bullish after it has tested the support of $ 0.65 and is traded at $ 0.69 on Tuesday. This upswing comes after the recent sale caused by the uncertainty of the US tariffs, and is a cautiously optimistic trend in wider market consolidation.
In the meantime, the total value (TVL) in Cardano’s defi sector is still declining, so that the prospects for the coin are mixed.
Positive signals indicate relaxation
After the sale last week, Ada tested the support of $ 0.65 and bounced off. The sale was triggered by the court ruling, which blocked the tariffs introduced by President Donald Trump and unsettled the market. Although the judgment was temporarily suspended on the basis of an appeal, the uncertainty remained and influenced crypto prices.
An increase of the Open Interest (OI) at derivatives 2.2 % to USD 831 million in 24 hours means that more dealers are interested in ADA, since the trading volume is over 1 billion USD. The Bony Futures data show a bullish tendency with a long-short ratio of 2.83. The liquidation data show that 198,000 long positions were closed compared to 394,000 short positions, so that the possibility of a short squeeze that could drive up the ADA price.
The technical analysis supports this view. The weekly chart shows that Cardano (ADA) is $ 0.69, just below the 20-dayema of $ 0.73. The 50-dayema is $ 0.68, and the 100-day and 200-day table is $ 0.63 or $ 0.62 lower. The course consolidates between short -term resistance at $ 0.73 and support at $ 0.62.
The RSI is 48.5 and thus under 50, but shows upward moment. If the course breaks over the immediate resistance at $ 0.70, the RSI also has to rise over 50 to open interest bullies.
Cardano’s latest analysis indicates that the cryptocurrency is still in consolidation, a breakthrough over $ 0.70 and an increasing RSI would mean buying interest and possibly an upward trend. However, if she fails to overcome the resistance, she will move in a trading range or fall back on the lower EMA support.
Salvan Defi-TVL illuminates system problems
Despite the positive price signals, the Defi ecosystem from Cardano is under pressure because the TVL falls. Defillama’s data show that the TVL has recently dropped to $ 317 million from around $ 414 million on May 11th. This means a lower demand for ADA in defi protocols and less trust in the user.
A falling TVL means that investors withdraw assets from smart contracts, which can indicate a sale. A lower TVL means lower participation in staking, payment of transaction fees and the governance of the Cardano network. This is in contrast to other protocols that have a higher defect engagement, such as Unicain, which has over $ 700 million on TVL.
The indicator moving average convergence divergence (MACD) also shows a declining mood. On May 17th, the MACD gave a sales signal when the blue MacD line is below the red signal line. This technical signal warns the dealers of a declining dynamic despite the recent course recovery at ADA.
Cardano’s market pressure increases
The market data show that the Cardano price is under pressure. ADA is 43 % below the highest level of December 2024 of $ 1.32. The Altcoin market is reserved. Buyers are getting stronger, but the fear of the market and economic uncertainty still influence the old coins. Many cannot break through important resistance.
On the technical side, the analysts observe a death cross, a bearish signal when the short -term moving average falls below the long -term average. If the support is broken at $ 0.65, ADA will fall to $ 0.50, which corresponds to a decrease of 25 %.
Ada consolidates above $ 0.74 and forms a base that could be an outbreak. The market is getting tight, so the next movement will be great. A value over $ 0.90 would be an outbreak and would attract more private and institutional investors.
Analyst Ali Martinez reportedthat whales bought over 80 million ADA. Large purchases from owners are a sign of trust and could trigger another price increase. The accumulation of Whales is often preceded by great price movements. ADA could prepare for a big change.
There is also a reputation risk for the founder of Cardano, Charles Hoskinson. There are accusations ontothat he abused 600 million ADA during the Allegra-Fork in 2021. He denies this, but an impending examination will influence the mood of the investors.
Cardanos Defi deficit compared to the competitors and the lack of a significant competitive advantage also put a strain on the view of the company. While integration with Bitcoin is expected, other protocols such as Solvprotocol already offer similar functions, which limits ADA’s potential growth in this area.
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