Cardano Price Prediction As Blockchain Total Locked Value Hits All-Time High – ADA Adoption On The Rise?

Cardano coin. Source: Adobe

According to data from DeFi Llama, the ADA-denominated value of the cryptocurrency locked on the Cardano blockchain has hit an all-time high of 341 million ADA – indicating growing adoption of the platform.

ADA is the token powering Cardano’s high-performance smart-contract-enabled blockchain, viewed as a rival to the Ethereum blockchain.

The ecosystem received a boost earlier this year with the launch of the over-collateralized Djed algorithmic stablecoin, which has opened up new yield-growing opportunities in the Cardano DeFi ecosystem.

Djed’s circulating supply is already around 2.1 million, while the log has a reserve ratio of 471%, according to the project’s website.

USD-denominated TVL still well below 2022 highs

Despite the recent surge in ADA-denominated value of Cardano’s TVL, a sharp drop in USD-denominated price of ADA over the past few weeks means USD-denominated TVL on the Cardano blockchain remains well below its early-2022 highs.

The highest TVL Cardano has ever seen was over $430 million about 12 months ago.

Back then, Cardano’s price was closer to $3 per token. At the time of writing, ADA/USD is changing hands just above $0.31, down about 90% from its all-time highs and down 25%, a strong resistance in the $0.42 area since early February was found.

The cryptocurrency’s aggressive decline over the past few weeks comes amid broader crypto market weakness on the back of US dollar strength, US yields and weakness in equities as traders price in a more dovish Fed outlook for the year.

Crypto-specific concerns are also hitting the market, such as the recent downfall of crypto-friendly Silvergate Bank and ongoing nervousness over a US regulatory crackdown.

What’s next for Cardano (ADA)?

Cardano’s decline this week means the cryptocurrency has slipped below all of its major moving averages. Additionally, the cryptocurrency now appears to be in a downtrend that dates back to June 2022.

The failure of ADA/USD to break significantly above its 200-day moving average over the past month is another sign that there hasn’t been enough momentum for a meaningful positive shift in the near-term price outlook.

Technically, the outlook for the cryptocurrency does not look good in the short-term, with a drop below $0.30 looking very likely. This would open the door for a drop to the late 2022 lows in the $0.24 area, another 24% drop from current levels.

With the 14-day Relative Strength Index (RSI) approaching oversold territory, it is unlikely to be a straight line lower than it has been for the past few weeks.

Alternatives to Cardano (ADA) to consider.

Cardano’s near-term prospects look weak, with a significant risk of further near-term losses. Investors looking for better, shorter-term coins might want to diversify their holdings with some presale tokens that have a great risk-to-reward ratio — in fact, while presales are risky (like all cryptos), crypto investors are who historically have had the best returns are those who got into a presale early.

In the list below, we have reviewed the top 15 cryptocurrencies for 2023 as analyzed by the Cryptonews Industry Talk team.

The list is updated weekly with new altcoins and ICO projects.

Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.

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