Cardano TVL has been on a downtrend over the past few days due to a sharp correction in the cryptocurrency market and declining investor interest.
To date, the cryptocurrency has fallen to $120.86 million. At the rate it has been going, Cardano has amassed over $205 million in TVL since its all-time high of $326 million on March 24, 2022.
Cardano is said to be the eighth largest crypto by market cap, a patented blockchain platform for rainmakers and innovators. It is a POS network that provides robustness and stability to DApps and systems.
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Cardano loses over 65% of TVL
Cardano is slipping and has even broken its support level. As the crypto market continues to collapse, it is down 7% today. Increased selling pressure on the support could easily lead to a sharp correction towards $0.34.
Cardano has lost over 65% of its TVL. This week, ADA started a bearish trend trend and further lowered the support level on Thursday. Lower crypto trading volume can result in incremental losses along the way.
And it’s not just Cardano; Other decentralized exchanges such as Wingriders have also shaved off over 50% of their TVLs within the same period. SundaeSwap also faced a similar fate, losing 41% of its TVL stake.
ADA total market cap at $15.48 billion on the weekend chart | Source: TradingView.com
Cardano is stumbling and falling after breaking a critical area of support. The severe downswing triggered a downward movement of ADA just below the $0.50 support level, causing $1.40 million worth of liquidations on various exchanges.
Further downside is expected below $0.34 or even higher. Considering the current TVL, we see a more pessimistic or bearish outlook as long as Cardano trades below $0.55.
On the other hand, one should most likely expect a reverse with the four-hourly candlestick located above the resistance resistance. Breaking the supply wall could lead to an increase in the number of buy orders for Cardano, thus pushing the price up to $0.61.
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The Crypto Market Isn’t Moving Up Overnight
Over the past few weeks, mixed sentiments have stirred the crypto market. Investors are hesitant to jump the gun, crippled by fear and uncertainty.
Yes, there is a lot of pessimism in today’s market. Furthermore, technical indicators seem to support the fact that the declining trend in the crypto market will not change overnight.
However, it is always recommended to invest when the market sentiment registers lower levels, the current market conditions may not give you good returns sooner than expected.
Featured image from Coincu News, chart from TradingView.com