- Cardano’s decentralized exchange (DEX) has achieved daily trading volume of over 23 million ADA.
- The price of ADA continued to fall with velocity.
Cardano [ADA] Holders have struggled over the past week as prices have fallen, but the DeFi sector has seen an upsurge in interest.
Current State of DeFi
Cardano’s DEX (decentralized exchange) daily trading volume has exceeded 23 million ADA.
Source: X
Despite the surge in DEX trading volumes, Cardano’s TVL (total value locked) has plummeted.
According to Artemis data, Cardano’s TVL has fallen from $430 million to $230 million. This decrease in TVL can be attributed to a decline in interest in dApps on the Cardano network.
Source: Artemis
Another factor that could negatively impact Cardano is the NFT transactions taking place on the network. Last month, popular NFTs on the Cardano network experienced significant drops in minimum prices and overall trading volume.
A decline in interest in the Cardano ecosystem could have severe repercussions for the protocol and could also negatively impact ADA price fluctuations.
Source: TapTool
At the time of writing, ADA was trading at $0.4489. Over the past few weeks, ADA price has made multiple lower lows and higher highs, indicating a bearish trend.
The price of ADA then traded between $0.512 and $0.421. During this period, the $0.512 level was tested multiple times.
If the price of ADA again tests the $0.512 levels and weakens, a reversal in price is likely.
However, at the time of writing, the indicators did not support a bullish view of ADA.
ADA’s RSI (Relative Strength Index) has fallen significantly, suggesting that bullish momentum is fading. Additionally, Cardano’s CMF (Chaikin Money Flow) has also fallen significantly, indicating a significant drop in funds flowing into ADA.
BTC/USD daily chart. Source: Trading View
What about the ADA?
Another concern regarding ADA is its slowdown. The slowdown means that the frequency of ADA transactions has dropped significantly over the past few days.
Read Cardano (ADA) Price Prediction 2024-25
Additionally, ADA’s MVRV ratio has declined significantly, indicating that most addresses have become less profitable.
The ADA long/short ratio has also fallen significantly, indicating a decline in the number of addresses holding ADA for the long term.
Source: Santiment
