Will Cardano Price Double As TVL Hits ATH?

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As a seasoned analyst with a knack for spotting trends in the ever-evolving crypto market, I have to say that Cardano’s price action is definitely catching my eye. With its DeFi TVL reaching new highs and technical indicators pointing towards a potential breakout, it seems we might be on the verge of witnessing a substantial ADA price increase.

Looking ahead, there’s a possibility of Cardano‘s price experiencing a robust upward surge due to a bullish breakout. This could potentially lead to significant gains over the next few days. The ongoing crypto market uptrend, coupled with its robust fundamentals and technical indicators, seem to be fueling this momentum. Could we see the ADA price doubling as the value locked in its DeFi system reaches an all-time high?

Cardano Price Could Explode As DeFi TVL Spikes to New Highs

It’s advantageous for Cardano that its Decentralized Finance (DeFi) ecosystem is experiencing a surge. As per DeFi Llama, the overall value locked within this ecosystem has soared to an all-time high of $619 million.

remarkably, even with a starting value of only $200 million in September this year for its total assets, the network has experienced a significant surge, with Liqwid, its largest DeFi component, increasing by an impressive 290% over the past month to exceed $175 million. Additionally, the assets in Minswap, Indigo, and Lenfi have also seen substantial growth, climbing more than 120% during the same timeframe.

Although the total value locked (TVL) in Cardano is currently increasing significantly, it’s essential to note that this growth is primarily due to the recent rise in the price of ADA. In other words, while the overall TVL has grown, the value of ADA required to lock up assets (TVL in terms of ADA) has remained relatively stable at approximately 630 million over the past few months.

Cardano Technical Analysts: ADA Is Primed For Breakout

Enthusiastic crypto experts predict an imminent surge in the price of Cardano, potentially reaching as high as $12.5 if the price of Bitcoin climbs up to $250,000. According to Cardano’s own Hieronymous, this would represent a massive increase of approximately 1,100% for Cardano.

Based on current technical analysis, it appears that the coin is gearing up for a significant surge in the upcoming days. On the daily chart, the coin has climbed effortlessly above the crucial resistance point at $0.8088. This level is noteworthy because it marks the upper boundary of the ‘cup and handle’ pattern, a commonly used continuation signal.

Earlier this week, the coin exhibited a shape resembling a ‘long-tailed candle’, which is often associated with a bullish reversal in market trends. This pattern likely caused the coin to rebound. The long-tailed candle, or hammer, typically features a small body and a significant lower shadow, signifying that the price opened at a high but closed near the low, suggesting potential for an upward trend.

Cardano is exhibiting a bullish pennant structure, which occurs when the price action creates a lengthy upward slant and a triangular formation. Additionally, it consistently maintains positions above both its 50-day and 200-day moving averages.

Consequently, a rise above the yearly peak of $1.1530 for ADA would signal further price growth. In such a case, the coin might reach $2 within the upcoming days.

From my perspective as a researcher, falling slightly short of the upper boundary of the ‘cup and handle’ pattern at $0.8720 might suggest a reversal in the bullish trend, potentially leading us down to $0.80 – the lower limit of this technical formation.

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2024-11-29 15:04