Cardano TVL has spiraled down in recent days mainly due to the intensifying crypto market correction and declining investor interest.
To date, the crypto has plunged to $120.86 million. At the rate it’s going, Cardano has shed over $205 million in TVL since its all-time high of $326 million on March 24, 2022.
Dubbed as the 8th largest cryptocurrency by market cap, Cardano is said to be the proprietary blockchain platform for rainmakers and innovators. It is a POS network that strengthens and gives sustainability to dApps and systems.
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Cardano loses over 65% of TVL
Cardano is slipping away and has even broken through its support level. It fell 7% today as the crypto market continues to crash. Increasing selling pressure at support can easily reveal a sharp correction to $0.34.
Cardano has lost more than 65% of its TVL. This week, ADA started to move into a downtrend and lowered the support level further on Thursday. Low cryptocurrency trading volumes can lead to incremental losses down the road.
And it’s not just Cardano; other decentralized exchanges like WingRiders have also slashed more than 50% of their TVL in the same period. SundaeSwap also suffered the same fate losing 41% of its TVL.
ADA total market cap at $15.48 billion on the weekend chart | Source: TradingView.com
Cardano is stumbling and falling after breaking through the critical support area. The severe drop has triggered ADA’s move lower just below the $0.50 support level, precipitating $1.40 million worth of liquidations across various exchanges.
It is expected to drop further to $0.34 or even much lower. Considering the current TVL, we see a more pessimistic or bearish outlook as long as Cardano trades below $0.55.
On the other hand, people are most likely expecting the opposite with a four-hour candle placed above the resistance barrier. Breaking the supply wall can increase the number of Cardano buy orders, driving prices to $0.61.
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Crypto Market Does Not Flip Up Overnight
In recent weeks, mixed emotions have caused the crypto market. Investors have been hesitant to jump ahead, paralyzed by fear and uncertainty.
Yes, there is a lot of pessimism in the current market. Furthermore, the technical indicators seem to support the fact that the crypto market’s downtrend will not change overnight.
Although it is always recommended to invest when market sentiment is at the extreme low, current market conditions may not bring you good returns sooner than expected.
Featured image from Coincu News, chart from TradingView.com