Altcoin
Cardano’s TVL rips to a new 10-month high. What does this mean for ADA?
After witnessing a slump, Cardano is back on its feet in the second quarter of 2023. At the time of writing, ADA was trading 13% higher over the last seven days.
- Cardano’s TVL performance shows promise as far as recovery from last year’s crash is concened.
- ADA bulls maintain strong momentum but short-term outlook may lend favor to the bears.
Remember when Cardano’s ADA was one of the worst performing top cryptocurrencies? It was heavily favored by the bears and short sellers. Well, the script has changed and it is now one of the most promising top coins.
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Cardano’s total value locked (TVL) was perhaps one of the best indicators that the network was headed in the right direction. The TVL has been growing aggressively since the start of 2023 to its current level at around $156.62 million.
A $107 million recovery compared to its lowest level in the last four months. This was also Cardano’s largest TVL bounce back since its decline commenced in March 2022.
Source: DeFiLlama
Such growth denoted the return of confidence into the Cardano ecosystem. This observation was important for investors because it will likely encourage more people to hold ADA especially for the long-term. Well, ADA’s latest price action revealed that there was already a strong bullish bias for ADA based on its YTD performance.
ADA traded at $0.42 at press time after a 13% upside in the last seven days. The latest rally was built on the bullish momentum that has prevailed since the start of 2023. At the time of writing, the altcoin was trading at a 79% premium on a year-to-date (YTD) basis.
Source: TradingView
Will ADA break its bullish impetus?
Despite its bullish performance, ADA signs of sell pressure were piling up, starting with a key resistance level retest at $0.42. ADA was also about to enter into overbought territory according to the RSI.
ADA’s mean coin age and MVRV ratio were also at their highest levels in the last four weeks. A confirmation that many ADA holders bought at lower prices and were in profit at press time.
Source: Santiment
Although it is worth noting that the mean coin age dropped slightly since 5 April. This indicated that a sizable amount of ADA recently changed hands.
ADA’s supply distribution also offered a clearer picture of why the age consumed metric was down slightly. Addresses holding over 1 million ADA (indicated in blue) slashed their balances by a noteworthy margin on 5 April.
Source: Santiment
How many are 1,10,100 ADAs worth today
The other whale addresses have slowed down their accumulation since then but the price continued rallying. This might be due to incoming retail demand. Although ADA’s robust performance might be disrupted by short-term sell pressure, ADA and Cardano prospects remain favorable.
