- Cardano price has found a strong support zone between 23 and 24 cents YTD after forming a triple bottom that is often preceded by a bullish breakout.
- The Cardano’s DeFi ecosystem has exponentially grown YTD with staked ADA on the rise amid mainstream adoption of smart contracts.
As Bitcoin price struggles to rally beyond $27.4k despite the high-impact news, Cardano (ADA) is preparing for an imminent breakout after retesting a macro support level severally.
Trading around 25 cents during the early London session on Thursday, Cardano (ADA) has given investors confidence to continue accumulating in anticipation of an upcoming altcoin season during the fourth quarter. For instance, after being trapped in a falling trend since July following the daily death cross between the 50 and 200 Moving Averages (MA), the ADA price action has in the past few days signaled a possible reversal.
Moreover, the rising divergence on the daily RSI amid a possible head and shoulder pattern shows the buyers have been outperforming the sellers in the past few weeks. Additionally, the Cardano (ADA) daily price action shows the instrument is currently retesting a former falling logarithmic resistance trendline.
What Cardano Needs to Push Beyond 30 Cents Soon
As an impressive smart contract blockchain, with about $150 million in total value locked (TVL) and $15 million in stablecoins market capitalization held in its DeFi ecosystem, the underlying value of Cardano (ADA) price is ultimately poised for a bullish recovery. However, the Cardano core developers need to continue educating the mass investors on its vast infrastructure that helps the network become more interoperable with other smart contract blockchains like Ethereum.
In a bid to push for Cardano’s mainstream adoption, several initiatives have been planned in the coming months including the Dubai summit held on November 2-3. The in-person Cardano event is meant to educate the investors on the best DeFi platforms running on the blockchain to ensure future growth prospects.
For Cardano’s (ADA) price to rebound and push beyond 30 cents in the coming weeks, buyers ought to outshine the sellers to avoid a capitulation below 23 cents. Furthermore, if Cardano’s price drops below $0.23, the next major support is between $0.15 and $0.18. In that case, the Cardano recovery sentiments will take longer as short-term holders would be significantly devastated.
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As a Proof-of-Stake (PoS) secured blockchain, the Cardano ecosystem has attracted more institutional investors and retail traders seeking staking rewards. For instance, the Cardano network offers stakers between 4-5 percent in APR through different DeFi platforms including non-custodial wallets. With its deep liquidity, the Cardano ecosystem is bound to attract more investors seeking to flee from the traditional system that is oppressive with low yields and high-interest rates on loans.
Notably, the Cardano ecosystem had a market capitalization of about $8.7 billion and a 24-hour average traded volume of approximately $116 million, up around 16 percent. Some of the top DeFi protocols leveraging Cardano include Minswap, Indigo, Liqwid, VyFinance, and an algorithmic stablecoin dubbed Djed. However, top DeFi protocols like Uniswap, and AAVE have not integrated with the Cardano ecosystem, which could significantly help improve the underlying liquidity.
