Cardano has been on a wild ride lately. For five straight weeks, ADA surged, hitting heights not seen since January 2022. But this week? Things are looking shaky.
The latest weekly candle could be red. If that happens, we might be seeing the end—or at least a pause—of the bull run.
What’s causing this? A pattern called the hanging man is forming. It’s got a long lower shadow and a tiny body, no upper shadow in sight. Not great news for an uptrend.
Usually, this pattern means a bearish breakout is coming. For Cardano to stay on track, it needs to close the week above $1.1957.
- If it dips below this level, we could see more declines.
- Staying above keeps hopes alive for further gains.
Network Developments: A Double-Edged Sword
Cardano’s network is making headlines, and not all of it is good news. Recently, the community voted in favor of a new constitution referendum. It’s a big deal, showing strong community engagement.
However, high community activity doesn’t always translate to price stability. The total value locked (TVL) in Cardano’s network is hovering around $597 million. It’s almost back to its peak from last week, but not quite there yet.
Here’s a quick look at the major players:
| Protocol | TVL (in millions) |
|---|---|
| Liqwid | $150 |
| Minswap | $120 |
| Indigo | $100 |
| Splash Protocol | $80 |
The DeFi TVL has been climbing thanks to ADA’s rising price. Volume is steady at about 610 million ADA. But here’s the kicker: historically, DeFi TVL and DEX volume don’t move the price much. So, while things look good on paper, it might not boost ADA’s value as much as expected.
Market Sentiment and Future Prospects
So, what’s next for Cardano? Investors are scratching their heads. The recent volatility is nerve-wracking. Some are hopeful, others are cautious.
If Cardano can hold above $1.1957, there’s still room to grow. Pushing past the year-to-date high of $1.3157 could set the stage for even bigger gains, possibly aiming for its all-time high of $3.
But, if things go south and ADA drops below $0.8030, it could signal bigger trouble ahead. The support level is crucial. Breaking below it would likely lead to a more significant downturn.
Is Cardano poised for a comeback, or are we seeing the end of its current rally? Time will tell, but investors are definitely keeping a close eye on every move.
