Cardano’s (ADA) price is hovering around $0.33 and near its one-year lowest.
Over the last month, ADA saw a significant decline of 16,5%. The market is becoming more bearish.
Cardano’s on-chain metrics indicate a negative sentiment
In just one week, the number of daily active addresses that are in losses has risen from 1,680 up to almost 12,000!
Only 17% of ADA owners are still in the black, according to recent IntoTheBlock statistics.
The situation has been exacerbated due to a sharp 89% decline from the all-time record high of $3.10, which was recorded in September 2020.
The scheduled ADA token unlocks add downward pressure. For example, 18.53 millions ADA tokens worth approximately $6.15million were released on the 27th of October, with an identical amount due on November 1st.
The unlocks are relatively small compared with Cardano’s market capitalization of $11.8 Billion, but they contribute to a market that is already very tense.
A prominent analyst has predicted a possible crash up to 30 percent, and set a price target of $0.23.
Despite a recent 0.4% increase, ADA is still down 8.9% this week. This decline in trading volume of 14% also signals a waning activity on the market.
Overall, the analysis is bearish. However, there’s a glimmer hope that ADA will stabilize in a trading range of three months.
The probability of ADA becoming bullish
Cardano is currently experiencing a volatile market, characterized by losses of significant amounts and a bearish outlook. However, ongoing developments as well as the rising TVL indicate a positive future.
According to DeFilLama, Cardano’s Total Value Locked is approaching new heights. This offers a positive contrast to the current struggles of its price.
TVL of the network has steadily increased, due to the increasing use of DeFi protocol and continuous improvements that aim at improving throughput and decreasing transaction costs.
In the last 24 hours, ADA managed to increase by more than 2%. It is currently trading at $0.3373, indicating some investors are still confident in its future.
The technical analysis indicates that there is a potential for reversal. Trading volume has increased by 61% over the past day.
The increase in volumes indicates a growing interest from both institutional and retail investors.
Analysts think that the continued improvements to Cardano’s network, especially in terms of scalability, interoperability and scalability, could attract developers and users and potentially drive ADA price up in the future.
Investors are watching for signs of market recovery and will decide ADA’s future trajectory based on the balance between all these factors.
The post Will Cardano fall despite an increase in TVL? The COINPAPER.COM published the first version of this post: Will Cardano decline despite uptick in TVL and trading volume?
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