Cardano TVL Sheds $205 Million Since Hitting All-Time High
May 28 2022 - 2:35AM
NEWSBTC
Cardano TVL has spiraled downward the past few days mainly because
of the intensified crypto market correction and decline in investor
interest. To date, the crypto has plunged to $120.86 million. With
the rate it’s going, Cardano has chucked over $205 million in TVL
since its all-time high of $326 million on March 24, 2022. Dubbed
to be the eighth largest crypto by market cap, Cardano is said to
be the blockchain platform patented for rainmakers and innovators.
It’s a POS network that strengthens and provides sustainability to
dApps and systems. Suggested Reading | XRP Whales Boost
Accumulation Appetite, Register 2-Month Peak Holding Supply Cardano
Loses Over 65% of TVL Cardano is slipping away and has even
breached its support level. It dipped by 7% today as the crypto
market continues to collapse. Increased selling pressure on the
support can easily give away a steep correction of $0.34. Cardano
has lost more than 65% of its TVL. This week, ADA started moving
towards a bearish trend and dipped further down the support level
on Thursday. The low crypto trading volumes may result in
incremental losses along the way. And it’s not just Cardano; other
decentralized exchanges like WingRiders have also shaved off more
than 50% of their TVL within 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 dropping after breaking the critical area
of support. The severe downswing has triggered the downward
movement of ADA right below the $0.50 support level, which
precipitated $1.40 million worth of liquidations in varied
exchanges. It’s expected to go further down 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 should most likely expect the reverse with a four-hour
candlestick positioned above the resistance barrier. Breaking
through the supply wall can increase the number of buy orders for
Cardano, thus pushing the prices to $0.61. Suggested Reading | ADA
Grapples At $0.524; Bullish Trajectory Coming Crypto Market Not
Flipping Upwards Overnight In the past few weeks, mixed emotions
have provoked the crypto market. Investors have been hesitant to
jump the gun, crippled by fear and uncertainty. Yes, there is a lot
of pessimism in today’s market. More so, technical indicators seem
to support the fact that the crypto market downtrend will not flip
overnight. Although it’s always recommended to invest when the
market sentiment registers at a low end, the current market
conditions may not give you good returns sooner than expected.
Featured image from Coincu News, chart from TradingView.com
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