Cardano TVL has been in a downward spiral for the past few days, mainly due to an intensified correction in the crypto market and a decline in investor interest.
The cryptocurrency has plummeted to $120.86 million so far. Cardano’s TVL has surpassed $205 million since hitting an all-time high of $326 million on March 24, 2022.
Cardano, known as the eighth-largest cryptocurrency by market capitalization, is said to be a patent-pending blockchain platform for rainmakers and innovators. This is a POS network that enhances and provides sustainability to dApps and systems.
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Cardano loses over 65% of TVL
Cardano is slipping and even breaking the support level. It is down 7% today as the cryptocurrency market continues to crumble. Increased selling pressure at the support level could easily give up a sharp correction at $0.34.
Cardano lost over 65% of its TVL. This week, ADA started a bearish trend and fell further to support on Thursday. Low crypto trading volumes can lead to increased losses along the way.
It’s not just Cardano; other decentralized exchanges like WingRiders have also slashed their TVL by more than 50% during the same period. SundaeSwap suffered the same fate, losing 41% of TVL.
ADA total market cap at $15.48 billion on the weekend chart | Source: TradingView.com
Cardano stumbles after breaking a key support area. The severe drop caused ADA to drop below the $0.50 support, which resulted in liquidations worth $1.4 million across exchanges.
Expect further declines to $0.34 or lower. Given the current TVL, as long as Cardano trades below $0.55, we see a more bearish or bearish outlook.
On the other hand, one would most likely expect the opposite, a four-hour candlestick above the resistance. A breach of the supply wall could increase the number of buy orders for Cardano, pushing the price to $0.61.
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Crypto Markets Won’t Flip Up Overnight
Mixed emotions have stirred the crypto markets over the past few weeks. Investors have been hesitant to act due to fear and uncertainty.
Yes, there is a lot of pessimism in the market today. More importantly, technical indicators appear to support the fact that the crypto market downtrend will not flip overnight.
While it is always advisable to invest when market sentiment is on the low end, current market conditions may not bring you good returns any time sooner than expected.
Featured image from Coincu News, chart from TradingView.com