The recent altcoin crash has been a significant setback for many cryptocurrencies, and Cardano is no exception. The SEC’s security claims have sparked a wave of uncertainty in the market, leading to a widespread sell-off. This sell-off has been particularly harsh on altcoins, which have seen their prices plummet. Amidst this turmoil, Bitcoin’s dominance continues to rise, casting a long shadow over altcoins, largely impacting the Cardano (ADA) price.
Cardano Network’s Developments Give Bullish Promises
Recent lawsuits by the U.S. SEC against Binance and Coinbase, labeling Cardano as a security, led to a drop in its price to $0.23. Despite this, some of Cardano’s metrics reached yearly highs, indicating increased adoption, according to data from Santiment. These metrics could suggest whether Cardano has hit its price floor.
Santiment reports that Cardano’s trading volume has recently surged, reflecting growing network activity and interest in the cryptocurrency. This heightened trading volume signifies active engagement from traders with the asset.
Cardano’s daily active addresses hit a yearly high, indicating increased user activity. Alongside this, its social dominance also surged, suggesting a highly active market. Despite the price drop, these metrics show increased transactions and interest, possibly indicating a market bottom for Cardano.
Data from DeFi Llama reveals a $50 million drop in Cardano’s Total Value Locked (TVL) since June 5, from its May 2022 peak of $183.06 million. However, in terms of ADA, the TVL is at a record high of over 507 million, marking a 250% increase since the year’s start. This resilience is attributed to network enhancements, including the May launch of Hydra, Cardano’s scalability solution.
What To Expect From ADA Price Next?
Cardano’s recovery recently faced a roadblock near the $0.28 level, a clear indication that bearish traders are putting up a strong fight to maintain the current bearish rally. As of writing, ADA price trades at $0.258, declining over 5.8% in the last 24 hours.
If the bulls are unable to push the price above $0.29 resistance level, it’s likely that the price of ADA may take a downward turn and slide towards the support level at $0.2365. If the price bounces back strongly from this level, it could result in the ADA price oscillating between $0.24 and $0.30 for several days, creating a range-bound scenario.
However, if the bulls manage to drive the price above the $0.3 mark, it would suggest that the recent downward trend may have reached its end, at least in the short term. This could pave the way for a potential rise to the 100-day Exponential Moving Average (EMA) which stands at $0.34.
If the momentum continues, the price could further ascend to hit a critical resistance at $0.36. This would be a positive sign for Cardano, indicating a potential shift in market sentiment from bearish to bullish.