Cardano
Cardano: Is ADA finally due for another breakout?
Cardano is among the cryptocurrencies that come to mind when contemplating the most bearish top digital currencies from their all-time-highs. One of the reasons for its bearish performance is the Cardano blockchain’s gradual development.
The slow development has delayed Cardano’s ecosystem of organic growth and this has consequently affected ADA’s price action. This has especially been observed in its failure to bounce back significantly after every dip. However, the extended decline also makes it a candidate for another breakout.
ADA showed promise in its latest bull run which saw it rally from its sub $0.80 lows to a new local top at $1.24. However, the cryptocurrency has since retraced to lower price levels and is currently trading at $0.96 after tanking by roughly 23.27% from its recent top.
Will ADA continue on the bearish trajectory or bounce back?
Perhaps ADA’s price action may offer insights into its near-term performance. ADA’s bearish trajectory still has some space to cover before it encounters support. Its RSI in the daily chart aligns with the price direction and the MFI confirms outflows in the last few days.
ADA’s 1-day chart onTradingView
ADA’s 4-hour chart reveals that the price has already broken through the short-term support, a sign of strong bearish pressure confirmed by the DMI. However, the RSI is flashing oversold signals, suggesting the likelihood of a reversal to the upside in the short-term.
Source: ADA’s 4-hour chart on TradingView
The short-term outlook is further enforced by a market cap increase in the last 24 hours as per its on-chain analysis. However, development activity has reduced in the last few days and so has its weighted sentiment.
Source: Santiment
ADA’s market cap increase is certainly something to consider especially since the price has been bearish for the last week or so. However, it is worth noting that it is a slight increase and most of the other metrics point towards a suppressed price action.
The above conditions do highlight ripe conditions for another short-term move to the upside. However, this is subject to the overall crypto market sentiment which is currently leaning on the side of fear.
Popular Cardano-based decentralized exchange WingRiders has lost its position as the most valuable DEX on Cardano.
WingRiders slumped from the first position to third after losing more than 59% of the total value locked (TVL) on the platform in the past 30 days.
At the time of writing this line, WingRiders is now the third-largest DEX by total value locked, with a TVL of $19.66 million. It is noteworthy that WingRiders maintained the top spot for more than two months, claiming 42% of TVL On Cardano. However, the DEX has fallen from glory ever since.
Minswap Is Now Cardano’s Most Valuable DEX
The development also affected the total value locked on Cardano. The total value locked on Cardano has fallen below $100 million in the last 30 days after the WingRiders TVL slumped.
Interestingly, Minswap has taken the lead to become the most valuable decentralized exchange on Cardano after the massive decline of WingRiders’ TVL.
At press time, Minswap is leading, with a $49.09 million total value locked on the platform. The DEX hit the milestone after recording a massive growth of 30.9% in its TVL in the past 30 days. Minswap accounts for 51.82% of the total value locked on Cardano.
SundaeSwap, the first decentralized exchange on Cardano, is now the second most valuable DEX in the ecosystem. SundaeSwap is second in the ranking, with $19.72 million in TVL.
Like WingRiders, SundaeSwap has also lost a significant amount of its TVL over the past 30 days. In the past month, SundaeSwap has lost nearly 10% of the funds locked on the platform.
Commenting on the development, Cardano Daily, a platform that shares new developments about Cardano, said:
“After the major decline of @wingriderscom, the TVL scenario of the Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem.”
CARDANO TVL STATUS
After the major decline of @wingriderscom, the TVL scenario of the @Cardano ecosystem has stabilized back to normal as we have seen in the past few weeks. @MinswapDEX still led the ecosystem with $51M TVL, contributing 50% of the ecosystem#tvl #cardano $ADA pic.twitter.com/xjZ6cHo8jX
— Cardano Daily (@cardano_daily) August 9, 2022
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