Cardano TVL loses $205 million since all-time high
Cardano TVL has been in a downward spiral in recent days, mainly due to the intensified crypto market correction and waning investor interest.
To date, the crypto has fallen to $120.86 million. At the rate at which it is going, Cardano has thrown more than $205 million into TVL since its all-time high of $326 million on March 24, 2022.
Cardano is listed as the eighth largest cryptocurrency by market capitalization and is said to be the blockchain platform patented for rainmakers and innovators. It is a POS network that strengthens dApps and systems and offers sustainability.
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Cardano loses over 65% of TVL
Cardano slips and has even exceeded his support level. It fell 7% today as the crypto market continues to collapse. Increased selling pressure on the support could easily give away a steep correction at $0.34.
Cardano has lost more than 65% of his TVL. This week, ADA started moving towards a bearish trend and plunged further below the support level on Thursday. The low crypto trading volumes can lead to incremental losses along the way.
And it’s not just Cardano; other decentralized exchanges such as WingRiders have also shaved more than 50% of their TVL over 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 stumbles and falls after breaking through the critical support area. The severe downturn has led to the downward movement of ADA just below the $0.50 support level, leading to liquidations worth $1.40 million across exchanges.
It is expected to fall further to $0.34 or even much lower. Given the current TVL, we see a more pessimistic or bearish outlook as long as Cardano trades below $0.55.
On the other hand, people would probably expect the reverse with a four o’clock candlestick placed above the resistance barrier. Breaking the supply wall could increase the number of buy orders for Cardano, pushing prices to $0.61.
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Crypto Market Doesn’t Flip Up Overnight
Mixed feelings have provoked the crypto market in recent weeks. Investors were hesitant to grab the gun, paralyzed by fear and uncertainty.
Yes, there is a lot of pessimism in the current market. What’s more, technical indicators seem to support the fact that the crypto market’s downward trend will not reverse overnight.
While it is always recommended to invest when market sentiment registers low, current market conditions may not give you good returns sooner than expected.
Featured image from Coincu News, chart of TradingView.com