Cardano Price Trapped in Multi-Week Bear Market - Is the Bottom Close?

The Cardano (ADA) price has been on a free fall since its ATH, $3.09, in August 2021. The eighth largest digital asset by market cap is, however, indicating a possibility of reversal supported by fundamental and technical standpoints. For instance, the weekly RSI indicates the digital asset is largely oversold, even below the 2018 bear market. Additionally, the ADA price is retesting a resistance trend line formed in the past year.

 Notably, should Cardano’s price rally beyond current levels of about $0.34, the multi-week bear market will be invalidated. However, a strong rebound from the upper trend line, resistance level, could mean the bottom is not yet achieved.

As with the rest of the altcoins industry, the Cardano price may be waiting for the Bitcoin price to comfortably trade above $21k to invalidate the 2022 bear market. Meanwhile, trading on ADA continues with about $841k liquidated in the past 24 hours according to Coinglass. 

Nonetheless, Cardano developers continue to build scalable, secure, and affordable decentralized applications (Dapps). According to data provided by defillama, the total value locked (TVL) in the Cardano ecosystem is about $71.49 million. However, Cardano’s TVL is menial compared to Polygon (MATIC) with over $1.15 billion. 

Some of the top DeFi projects that have bolstered ADA prices in the past include DEXes like Minswap, WingRiders, SundaeSwap, and MuesliSwap. 

Notably, Cardano’s price has gained approximately 39 percent in the past fourteen days, a rally that began thirty days ago. The decentralized third-generation proof-of-stake blockchain has attracted global users due to its ability to morph with real-world utility. For instance, the Cardano team has been enhancing its smart contract capabilities since the Alonzo hard fork.