Cardano Price Analysis: On-Chain Data Identifies Strong Bullish Signals for ADA Price

Cardano (ADA) has evolved into a thriving smart contract ecosystem, boasting over $15 million in stablecoins and more than 35,000 daily active users on its DeFi protocols. The core Cardano development team has been hard at work building the necessary infrastructure to accommodate a broader user base, with a focus on long-term sustainability.

Impressive Growth in Total Value Locked (TVL)

Market data provided by Defilama reveals that the Cardano network has a total value locked (TVL) of approximately $160.36 million, a substantial increase from January 2023. This surge in TVL has raised expectations for the Cardano network, especially given the growing adoption of blockchain technology and the cryptocurrency market.

Insights from Santiment’s On-Chain Metrics Analysis

Santiment, a crypto market intelligence platform, conducted an on-chain analysis of Cardano’s metrics. Despite ADA’s price remaining relatively suppressed, the network has witnessed a notable increase in on-chain transactions throughout the year. This uptick in on-chain activity suggests a rising demand as traders actively exchange ADA.

As DeFi protocols continue to flourish on the Cardano network, Santiment emphasizes the critical role utility plays in price rebounds. Additionally, Cardano’s social dominance remains higher than in the first quarter, indicating sustained trader interest.

As of Monday, ADA was trading around 26 cents in the early Asian market. The price has been testing a crucial support zone for the third time this year. Compared to the crypto bear market of the previous year, Cardano’s price has experienced diminished losses, signaling the potential for a long-term rebound that could see the digital asset retesting its all-time high (ATH) of around $3.

However, if Cardano’s bulls fail to defend the support zone around 25 cents, crypto experts believe the price could drop further to approximately 18 cents in the coming weeks.

Cardano’s smart contract ecosystem is thriving, with strong growth in TVL and on-chain activity. While the price faces challenges in the short term, the network’s utility and sustained interest from traders suggest a promising future, including the possibility of a return to its previous ATH.