Cardano Price Spikes to Two-and-A Half Year Highs As DeFI TVL Explodes

Summary:
• Cardano price has risen by 47 percent in the last week, and its DeFi TVL has grown by 51 percent during that period. Here's what that means.

Cardano price rose to its highest level in two and a half years on Wednesday, gaining 13.8 percent as of this writing to trade at $0.839. ADA has been on an upbeat momentum in the last week, during which it has risen by 47 percent. That means it has far-outperformed Bitcoin which has gained 6 percent and Ethereum, which has declined by 3.7 percent in the same period.

As reported here earlier, Cardano’s upsurge is also attached to its upsurge in the DeFi space. According to DeFiLlama, Cardano chain’s DeFi Total Value Locked (TVL) has recorded a 51.4 percent growth in the last seven days. That makes it the second-best DeFi performer in the last week, with only the Hedera chain outperforming it. Furthermore, the TVL has grown by 5 percent in the last 24 hours, signaling a continuation of the trend.

The growth in Cardano’s DeFi TVL translates to a rise in the demand for ADA coins. Meanwhile, Cardano is preparing to launch a Bitcoin bridge, which could increase its utility in the DeFi space. Whale activity has also risen significantly in the last seven days, with transactions exceeding $100k hitting $56.5 billion.

Cardano price prediction

The momentum on Cardano price favours the continuation of the upside above 0.835. The upward momentum is likely to head to 0.845 where it will encounter the first hurdle. However, extended bullish momentum will breach that barrier and take on the next resistance at 0.850.

Alternatively, moving below 0.835 will favour the sellers to be in control. That could establish the first support at 0.825. However, if the downward momentum strengthens, the price is likely to break below that level, which would invalidate the upside nrarrative. Meanwhile, the resulting momentum could extend the decline and send the price lower to test the second support at 0.816.