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Cardano

DeFi

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/cardano-faces-price-decline-despite-defi-growth" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cardano Faces Price Decline Despite DeFi Growth</a><br></p>
<p style="text-align: justify">Cardano (ADA) <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> experienced significant challenges last week as <a href="https://en.bitcoinhaber.net/the-rise-of-dogwifhat-wif-and-solanas-potential-surge" data-wpel-link="internal" rel="noopener noreferrer nofollow">token</a> prices plummeted. In contrast, the DeFi sector saw a surge in interest, marked by a notable increase in the daily volume of Cardano’s decentralized exchange (DEX), which surpassed 23 million ADA.</p>
<h2 id="why-is-cardano-s-tvl-dropping">Why Is Cardano’s TVL Dropping?</h2>
<p style="text-align: justify">Despite the rise in DEX activity, Cardano’s total value locked (TVL) fell sharply from $430 million to $230 million, according to data from Artemis. This decline indicates a waning interest in decentralized <a href="https://newslinker.co/category/mobile/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">applications</a> (dApps) on the Cardano network. Additionally, the network’s non-fungible token (NFT) transactions suffered, with a significant reduction in both floor prices and overall transaction volume last month.</p>
<p style="text-align: justify">The diminishing interest in Cardano’s ecosystem could pose a substantial threat to the protocol and further impact ADA’s price movements negatively. Currently, ADA is trading at $0.4489, having shown a series of lower lows and highs in recent weeks. The token fluctuated between $0.512 and $0.421, with the $0.512 resistance level being frequently tested.</p>
<h2 id="what-is-the-technical-outlook-for-ada">What Is the Technical Outlook for ADA?</h2>
<p style="text-align: justify">Should ADA retest and breach the $0.512 level again, there might be a potential reversal in price. However, current data does not favor a bullish trend. The relative strength index (RSI) for ADA fell sharply, signifying a decline in bullish momentum. Furthermore, the Chaikin Money Flow (CMF) for Cardano also took a downturn.</p>
<h2 id="key-inferences-for-investors">Key Inferences for Investors</h2>
<p style="text-align: justify">– ADA’s price is currently in a downtrend with lower lows and highs.<br> – TVL decline suggests reduced interest in Cardano’s dApps.<br> – NFT transaction volume and floor prices on Cardano are falling.<br> – RSI and CMF indicators for ADA show bearish tendencies.<br> – ADA’s transaction frequency and MVRV ratio are decreasing.<br> – Fewer long-term holders are retaining ADA, as indicated by the Long/Short ratio.</p>
<p style="text-align: justify">In conclusion, Cardano (ADA) is experiencing a tough period despite increased DeFi interest. Diminishing ecosystem engagement could pose long-term challenges unless addressed promptly.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/cardano-faces-price-decline-despite-defi-growth" data-wpel-link="internal" rel="noopener noreferrer nofollow">Cardano Faces Price Decline Despite DeFi Growth</a></h5>

Cardano Faces Price Decline Despite DeFi Growth

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