The recent altcoin crash was a significant setback for many cryptocurrencies, and Cardano is no exception. The SEC’s security claims triggered a wave of uncertainty in the market, leading to a sell-off. This sell-off was particularly tough for altcoins, which saw their prices plummet. Amid this turmoil, Bitcoin’s dominance continues to rise, casting a long shadow over altcoins, largely impacting the price of Cardano (ADA).
Cardano Network developments give optimistic promise
The recent lawsuits filed by the US SEC against Binance and Coinbase, calling Cardano a security, led its price to drop to $0.23. Despite this, some of Cardano’s metrics have reached yearly highs, indicating increased adoption, according to data from Santiment. These metrics could suggest whether Cardano has bottomed out.
Santiment reports that Cardano’s transaction volume has increased recently, reflecting the network’s growing activity and interest in cryptocurrency. This increased trading volume signifies active engagement of traders with the asset.
Cardano’s daily active addresses hit a yearly high, indicating increased user activity. At the same time, its social dominance has also increased, suggesting a very active market. Despite the price drop, these metrics show an increase in transactions and interest, possibly indicating a market bottom for Cardano.
Data from DeFi Llama reveals a $50 million drop in Cardano’s total value locked (TVL) since June 5, compared to its peak of $183.06 million in May 2022. However, in terms of ADA, TVL is at an all-time high of over 507 million, marking a 250% year-to-date increase. This resilience is attributed to network improvements, including the May launch of Hydra, Cardano’s scalability solution.
What to expect from the ADA price next?
Cardano’s recovery recently faced a roadblock near the $0.28 level, a clear indication that bearish traders are fighting vigorously to sustain the current bearish rally. At the time of writing, ADA price is trading at $0.258, down over 5.8% in the last 24 hours.
If the bulls are unable to push the price above the resistance level of $0.29, it is likely that the price of ADA may decline and slide towards the support level at $0.2365. If the price rebounds strongly from this level, it could cause the ADA price to oscillate between $0.24 and $0.30 for several days, creating a range bound scenario.
However, if the bulls manage to push the price above the $0.3 mark, it would suggest that the recent downtrend may have come to an end, at least in the short term. This could pave the way for a potential rise in the 100-day exponential moving average (EMA), which stands at $0.34.
If the momentum continues, the price could rise further to reach a critical resistance at $0.36. This would be a positive sign for Cardano, indicating a potential shift in market sentiment from bearish to bullish.
