The altcoin market has faced significant challenges following a steep drop in Bitcoin’s price, falling below the $100,000 mark. This shift came after U.S. President Donald Trump introduced new tariffs, including a 25% tax on imports from Mexico and Canada, and a 10% tax on Chinese products. As Cardano struggles with a decline in its DeFi activity, the cryptocurrency faces increasing bearish pressures, keeping ADA’s price within a narrow range for the time being.
Cardano’s Total Value Locked Drops
In the wake of the market crash, Cardano (ADA) has seen its price drop by 15% over the past week. According to Coinglass, more than $33 million worth of ADA was liquidated, with about $27.7 million coming from long positions being closed in the last 24 hours.
A significant factor contributing to Cardano’s struggles has been a drastic decline in its DeFi activity. Data from DeFiLlama shows that the total value locked (TVL) in the Cardano network has fallen sharply, plummeting from a high of $593 million earlier this year to just $355 million. This reflects a loss of approximately $238 million in assets, a direct result of the falling ADA price.
As Cardano’s price continues to decline, both in terms of its value and TVL, DeFi activity has waned. This trend adds to the bearish sentiment surrounding ADA. However, traders remain cautious, knowing that any resurgence in DeFi activity could potentially signal a recovery for the cryptocurrency.
The Impact of the Plomin Hard Fork and Whale Activity
Despite the current difficulties, Cardano’s recent update, the Plomin hard fork, has garnered attention. Supporters are optimistic about the potential benefits the update could bring to the network, especially in terms of ADA accumulation and its long-term price trajectory. The movements of large ADA holders, or whales, are also an important factor. These investors could play a key role in the market sentiment, with their purchases potentially driving a price recovery.
Moreover, the correlation between ADA and Bitcoin could offer a glimmer of hope. As Bitcoin stabilizes around the $100K mark after its recent drop, there are expectations that Cardano may follow suit. If Bitcoin can maintain its position, Cardano could see a similar stabilization, potentially laying the groundwork for future growth.
Is ADA Price Showing a “Buy the Dip” Opportunity?
As Cardano’s price adjusts following a strong upswing over the past few weeks, some investors see this as an opportunity to buy the dip. After reaching a low of $0.50, ADA price has since made an upward correction, currently trading around $0.79, though it has fallen by 0.8% in the last 24 hours.
The key price level to watch is $0.80. If ADA can hold above this level, there is potential for the price to move higher. However, if sellers push the price back down, ADA may revisit the $0.50 mark. For the next few days, ADA is likely to fluctuate between these two levels, with potential for volatility depending on market conditions.
In conclusion, while Cardano faces challenges due to low DeFi activity and market volatility, updates to its network and the actions of large investors could shape ADA’s future price. For now, the cryptocurrency is navigating a turbulent period, but its ability to maintain key support levels will be critical for any potential recovery.
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