Cardano’s Dramatic Plunge: Is This the End for ADA? 🤔💔

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On a fateful Monday, the price of Cardano took a nosedive, mirroring the dismal fate of its crypto brethren, as a staggering $263 million evaporated from its DeFi assets. One must ponder, how low can the ADA coin sink in this grand spectacle of digital despair?

Cardano Price Plummets as DeFi TVL Takes a Dive

According to the oracle known as DeFi Llama, the Total Value Locked (TVL) in the DeFi realm has plummeted to a mere $330 million, a far cry from its year-to-date zenith of $593 million. This catastrophic decline signifies a loss of approximately $263 million in locked assets, leaving the network gasping for breath.

But wait, there’s more! The ADA tokens have also taken a hit, sinking to a low of 413 million, down from the lofty heights of 618 million. Talk about a rollercoaster ride! 🎢

Further revelations indicate that the stablecoins within the network are also on a downward spiral, dwindling to about 23 million ADA tokens, down from a high of 25 million. It’s like watching a slow-motion train wreck, isn’t it?

To clarify, other blockchains are not immune to this crypto calamity. Ethereum’s TVL has nosedived by over 21% in the past month, while Tron, BNB Chain, Base, and Arbitrum have all seen their TVLs drop by over 15%. It’s a veritable crypto apocalypse! 🌍💥

ADA Liquidations Soar to December Heights

The ongoing ADA price debacle has triggered a surge in liquidations, with the 24-hour figure skyrocketing to nearly $32 million—the highest spike since the dark days of December 9 last year. Liquidation parties are all the rage, apparently! 🎉

This Cardano catastrophe is largely fueled by the rising specter of inflation in the US, following Donald Trump’s audacious tariffs on key trade partners like Mexico, Canada, and China. Higher tariffs, higher inflation, and higher interest rates—what a delightful trifecta! 🥳

ADA Price Analysis: How Low Can Cardano Go?

The daily chart reveals a tragic tale: Cardano’s price has plummeted from last year’s high of $1.3282 to a dismal low of $0.5570 on Monday. It has breached the crucial support level at $0.8285, marking its lowest point since December 30, and the neckline of the infamous double-top pattern at $1.1645. A double-top, you say? Sounds like a bearish party to me!

Cardano has also dipped below $0.8097, its highest swing in March 2024, while the 50-day and 100-day Weighted Moving Averages (WMA) have crossed paths like two ships in the night. 🚢

Key Levels to Watch

There are ominous signs that Cardano may continue its descent in the near future, with the next target lurking at $0.5570, its lowest level on Monday—about 22% below the current level. A drop beneath that threshold could signal a plunge to $0.3100, its 2024 low, which is a staggering 55% below the current level. Yikes!

On the flip side, the bearish ADA price forecast will be rendered moot if it manages to rise above the key resistance at $0.8285, the double-top’s neckline. But let’s not hold our breath, shall we? 😅

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2025-02-03 15:11