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Cardano has strong fundamentals as jumps with locked totals.
Its DeFi TVL jumped to an all-time high.
Cardano Stocks performed disappointingly in March after cryptocurrencies rallied. The ADA fell to $0.36, the low of the past few days. The price is about 22% below its May high, signaling a move into a bear market. The coin’s market cap dropped to about $12.3 billion.
Cardano Prices struggled in May even though the ecosystem recorded significant growth during the month. A good way to see the performance of chains like Cardano is to look at the performance of the decentralized finance (DeFi) ecosystem.
The latest data shows that Cardano’s DeFi ecosystem activity is going well. According to DeFi Llama, his TVL on Cardano saw him rise more than 9% in May to over $202 million. The increase marked the highest level since May last year.
Notably, TVL surged to all-time highs on an ADA basis. Currently hovering at 536.84 million ADA, he is above the year-to-date low of 263 million ADA. This indicates a strong demand for Cardano-made dApps such as Minswap, Indigo, Liquid, WingRiders, and MuesliSwap. MinSwap and Indigo TVL are up more than 20% over the last 30 days.
A similar trend was observed in the number of active users.according toDeFi RamaCardano’s total number of active users surged to over 81,93,000 in May.
Therefore, Cardano’s poor performance was not due to weak fundamentals. Rather, it is due to the broader performance of the cryptocurrency market. In May, the Bitcoin price fell from a year-to-date high of $31,000 to around $25,500. It fell on the debt ceiling issue and rising expectations that the Fed would maintain its hawkish stance.
The daily chart shows that the ADA price has fallen over the past few days. It has broken below the critical support level of $0.42, the February 15th high. The coin is consolidating at the 50-period moving average.
Most importantly, it seems to be forming a double top pattern which is usually a bearish sign. Therefore, we cannot rule out a situation where the coin falls to the next critical support level, the March 11th low of $0.298. Our bullish view will be invalidated once it breaks out of the double top point of $0.422.
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June Cardano Price Prediction: ADA Buy or Sell? First appeared on CoinJournal.
