Bitcoin’s price movement, often considered a weather vane for the broader cryptocurrency market, has been in a whirlwind of late. Its ongoing turbulence near key levels has sent shockwaves across the crypto ecosystem, creating a domino effect that’s impacting other digital currencies, including Cardano’s ADA. As concerns regarding interest rate hikes and US debt ceiling continue to spike, ADA is facing volatility with no clear indication.
Cardano’s Bearish Backdrop Amid Bullish Data
Marking a noteworthy progression, Cardano has fortified its standing in the decentralized finance (DeFi) arena by rising to the rank of the ninth largest decentralized exchange (DEX) chains worldwide in terms of trading volume. As per the information furnished by DeFiLlama, Cardano’s trading volume in the last 24 hours has crossed the $12 million mark, with an average weekly volume around $50 million.
This accomplishment situates Cardano comfortably above Fantom, positioning Tron as its subsequent rival. Cardano’s growth in the DeFi space is a validation of the network’s powerful and effective architecture that has attracted a plethora of projects, developers, and users.
A significant factor in Cardano’s triumph in the DEX landscape is Minswap. This platform has established a distinct position within Cardano’s ecosystem, contributing substantial DEX volume and playing a pivotal role in catapulting the network into the top 10. Minswap’s user-friendly interface, in conjunction with the security and swiftness of Cardano’s network, provides a smooth trading experience that draws traders worldwide.
Nonetheless, Cardano’s ascension into the top 10 DEX chains isn’t solely credited to traditional DeFi projects. A noteworthy trend fuelling the network’s expansion is the emergence of meme coins on Cardano. These tokens, typically sparked by social media hype and community involvement, have accounted for a significant part of the network’s recent trading volume.
How Cardano Will Perform From $0.36?
Over the last three days, Cardano has been on a downward trajectory, touching the uptrend line on May 21. This is a critical level to monitor as any breach above it would suggest that the bulls are holding their ground. As of writing, ADA price trades at $0.3632, declining over 1.9% in the last 24 hours.
ADA price made a robust bearish reversal near $0.377, signifying a massive panic in the market that pushed sellers to open short positions. If bulls manage to drive the price above the 20-day EMA at $0.3664, it will imply a diminishing selling pressure. The ADA/USDT pair is expected to gather momentum once it surpasses the 200-day EMA at $0.375 on the 4-hour price chart.
Conversely, if the price continues to decline from its current 23.6% Fib level and tumbles near the $0.36 mark and dips further, it would signal the initiation of a more severe correction towards $0.30.