- The Cardano network has recorded double-digit growth in its DeFi ecosystem in the past month led by DEXes like Minswap and Lending protocols like Liqwid.
- Amid the altcoin price breakout, Cardano’s (ADA) price gained more than 23 percent to solidify its rebound from last year’s ATL.
The Cardano (ADA) macro market outlook has hinted at a possible price reversal following the recent price rebound. Notably, Cardano price action has consolidated between 24 and 45 cents in the past year and a possible reversal from last year’s bear market looks imminent.
Moreover, the fundamental and technical aspects of the Cardano network support a bullish outlook in the coming months. From the technical standpoint, Cardano’s (ADA) weekly price has formed a possible double bottom with the RSI divergence showing a rising momentum.
Ultimately, the demand and supply zone around 45 cents will determine if the macro consolidation will continue or if a new trend will form. Moreover, the same level has acted as strong support and resistance in the past.
Closer Look At Cardano (ADA) Market Outlook
The Cardano network is significantly bolstered by the mainstream adoption of the DeFi ecosystem by global enterprises. The basic need for financial independence has significantly fueled the adoption of smart contracts-enabled global businesses. The Cardano network takes pride in hosting a secure way for developers to build scalable DeFi protocols.
As of publication time, the Cardano network had a reported total value locked (TVL) of about $183 million. Additionally, the Cardano network had a total stablecoins market capitalization of about $15 million. Interestingly, Cardano’s TVL has increased exponentially from about $50 million at the beginning of this year, thus depicting more adoption.
Notably, most Cardano DeFi protocols have recorded an increase of between 20-70 percent in TVL in the past month. Top DeFi projects on the Cardano network include Minswap, Indigo, Liqwid, VyFinance, Djed stablecoins, WingRiders, MuesliSwap, and SundaeSwap, among others.
Undeniably, the Cardano network received a notable boost and regulatory clarity from the recent XRP’s Ripple case summary judgment. With XRP having been largely classified as not a security asset, most of the crypto assets are also likely to follow a similar regulatory path. Furthermore, some lawmakers in the United States have recommended the recent SEC vs Ripple judgment summary to be passed into law on digital assets.
Well done XRP. One Small step for XRP Nation, one Giant leap for Cryptocurrencies! pic.twitter.com/WmuIg8Ccc6— Charles Hoskinson (@IOHK_Charles) July 13, 2023
Previously, the fears of Cardano among other digital assets being classified as security assets led to some centralized exchanges like Robinhood threatening to delist them in avoidance of clashing with the SEC.
Trading around 31 cents on Monday, the Cardano (ADA) price sits on a crucial support level after last week’s breakout. Once the resistance level of around 45 cents is broken, experts believe Cardano’s price could easily hit $1, which is the next major support/resistance level on the weekly time frame. Meanwhile, ADA’s volatility is expected to remain high amid an anticipated altcoins season.
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