Cardano Price Tapping DeFi TVL Potential To $1

Highlights

• Cardano's recent price increase reflects potential market stability.
• Declining trading volume might affect short-term price movements.
• Technical indicators suggest a cautious market approach for ADA.

ADA, a Layer 1 blockchain, has slightly recovered after a recent market surge. According to CoinMarketCap, Cardano price is trading at $0.385 on Wednesday. The digital asset has experienced a 3% increase in value over the past day implying growth potential in the third week of June.

Cardano currently ranks 10th among other cryptocurrencies, with $13.8 billion in market capitalization. The smart contracts token experienced a modest 30% increase in the trading volume to $410 million as bulls made a comeback.

Cardano Price Forecast: Bullish Signs Amidst Market Recovery

Over the past week, Cardano’s price has fluctuated after a more than 7% decrease, indicating instability in its market position. This downturn followed a period of relative stability, causing concern among investors about potential future volatility. 

Over the past month, ADA has decreased by over 10%, primarily due to broader market pressures and a cooling off after previous gains. However, with the current market recovery, ADA is optimistic about the potential for growth in the near term. The altcoin price has been trading in a range of $0.45 to $0.36, showing signs of consolidation. 

According to data from DeFiLlama, Cardano has a total value locked (TVL) of $217 million. This measure indicates the capital currently staked or locked in various decentralized finance (DeFi) protocols on the Cardano blockchain. It signals robust activity and engagement within its ecosystem.

Cardano’s stablecoins have a market capitalization of $18 million, and the platform has seen a trading volume of $5.8 million over the last 24 hours. The platform also raised $62 million, highlighting significant investor interest and funding support for its ongoing development and expansion.

Technical Outlook: ADA Near-Term Price Movements

With the current market recovery, Cardano is poised for potential growth. A successful push past the $0.4 mark could trigger a notable rally, possibly elevating its value to $0.6. This surge might challenge a key $1 resistance barrier during a forthcoming bullish phase.

Conversely, a downturn in market sentiment could see ADA retreating to approximately $0.38. A continued downward trend might further depress its price to $0.35 soon. In a scenario where bearish forces intensify, Cardano could slide to a low of $0.25 in the short term.

Technical Indicators Overview

• The 4-hour technical analysis for Cardano shows a slight price recovery. The Relative Strength Index (RSI) is currently at 40, suggesting that ADA is neither oversold nor overbought. 
• The Moving Average Convergence Divergence (MACD) shows proximity to the zero line with slight bearish momentum as the histogram sits just below zero. 
• The MACD line itself is marginally under its signal line, reinforcing the possibility of a bearish trend in the short term.
• The Chaikin Money Flow (CMF) indicator hovers just above the zero line, indicating a bullish trend.