- Cardano’s decentralized exchange (DEX) daily volume has exceeded 23 million ADA.
- Price of ADA continued to decline, along with its velocity.
Cardano [ADA] holders had a tough time over the past week as prices declined. However, in terms of the DeFi sector, there was an uptick in interest observed.
State of DeFi
Cardano’s DEX (Decentralized Exchange) daily volume surpassed 23 million ADA.
Despite the surge in DEX volumes, the TVL (total value locked) for Cardano has plummeted.
Artemis’ data revealed that the TVL for Cardano fell from $430 million to $230 million. This decline in TVL could be caused by the lack of interest in dApps on the Cardano network.
Another factor that could impact Cardano negatively would be the NFT trades occurring on the network. Over the last month, popular NFTs on the Cardano network witnessed a massive decline in floor price and overall volume being traded.
A waning interest in Cardano’s ecosystem could impact the protocol severely and may have a negative impact on ADA’s price movement as well.
At press time, ADA was trading at $0.4489. Over the past few weeks, the price of ADA showcased multiple lower lows and lower highs, indicative of a bearish trend.
After which, the price of ADA traded between the $0.512 and $0.421 levels. The $0.512 level had been tested multiple times during this period.
If the price of ADA re-tests and weakens the $0.512 level yet again, there is a possibility of a reversal in terms of price going forward.
However, at the time of writing, indicators weren’t supporting ADA’s bullish cause.
The RSI (Relative Strength Index) for ADA declined materially implying a falling bullish momentum. Moreover, the CMF (Chaikin Money Flow) for Cardano also fell materially indicating that the money flowing into ADA had significantly decreased.
How is ADA doing?
Another concerning factor about ADA would be its declining velocity. A falling velocity implies that the frequency with which ADA was being traded at had declined materially over the last few days.
Read Cardano (ADA) Price Prediction 2024-25
Moreover, the MVRV ratio for ADA had fallen significantly implying that the profitability of most addresses had declined.
The Long/Short ratio for ADA had also fallen materially implying that the number of long-term addresses holding ADA had fallen.
Source: Cardano: Can rising DEX activity rescue ADA from price declines?
