Cardano News: ADA Rises Amid DeFi Growth And ETF Speculation

Cardano (ADA) price is on an upward trajectory. It has grown in its DeFi sector and expects that the ETF approval will influence its future.

The token also reported a Total Value Locked, which stands at $747 million, showing more growth potential.

Market analysts speculate that if Cardano gains the same enthusiasm and attention surrounding XRP’s ETF approval, it may boost Cardano price to $3 in the near future.

– Advertisement –

Cardano’s DeFi Ecosystem Reaches New Heights

Cardano DeFi market has expanded significantly within the last few months.

Its total value locked (TVL) has grown to $747.28 million. It had dropped to $50 million in November 2022 due to the FTX collapse.

This means that there is increased engagement with Cardano’s dApps and increased general use of the blockchain.

– Advertisement –

The increase in the TVL points to a growing number of active users, with over 87,800 active addresses on the network in 24 hours.

Stablecoins such as USDT have also soared, with the market cap now at $24.37 million.

ETF Speculation Could Drive ADA Price to $3

Although Cardano’s DeFi expansion is significant, many recent perceptions of ADA stem from increasing anticipation that it could experience the same as XRP.

Ripple has not yet gotten the green light for its spot ETF. Despite the delayed approval, XRP has seen a lot of hype around it.

Analysts, including Crypto Capital Venture founder Dan Gambardello, have suggested that if Cardano receives similar attention and ETF-related news, ADA could experience a massive price surge, potentially reaching $3.

Gambardello pointed out that Cardano’s ecosystem is rapidly evolving, with new decentralized applications gaining momentum and institutional interest in the blockchain growing.

As the DeFi space expands on Cardano, it creates an ideal environment for increased ETF speculation.

The excitement around XRP’s potential ETF is catalyzing similar speculation in Cardano, with investors anticipating a similar outcome for ADA.

The XRP’s potential ETF has been a lot to discuss in the crypto market, with many strongly believing that others like Solana (SOL) could also be next.

Technical Indicators Suggest a Potential Correction

However, some technical indicators for Cardano are signaling overbought. Currently, ADA has a price of $1.2838 and has risen by 6.79% in the past 24 hours.

The RSI is at 84.91 revealing that the asset is overbought above the 70 mark and therefore could be due for a short-term correction.

The price has been on a steady upward trajectory, forming higher highs and higher lows, indicating strong bullish momentum.

However, the overbought RSI suggests that there may be selling pressure soon.

Immediate support is found in the $1.20–$1.22 range, where the price recently consolidated. If the price declines below this range then further support is seen at $1.10 and $1.03.

A pullback below $1.03 might lead to a bearish action that can result in the reduction of the price to $0.88.

Cardano’s Future Outlook

The long-term outlook for Cardano is positive, particularly due to the continuous growth of its DeFi ecosystem and increasing institutional adoption of the platform.

However, short-term volatility is likely, as indicated by technical indicators, and ADA may experience a pullback before continuing its upward momentum.

The next few months will be critical in determining whether Cardano can maintain its bullish momentum or if a correction will impact its path forward.