Cardano, one of the most popular cryptocurrencies and a PoS network in the technology sector, has not performed well in the second half of this year. This can be attributed to the significant impact of the SEC lawsuits and the label of security. However, an important metric that long-term investors focus on presents a positive outlook for the price of ADA Coin.
Current Status of the Cardano Network
Although the ADA Coin price did not meet the expected performance, the total locked value (TVL) on the network has increased by 2.5 times in 2023. Despite the growth in ADA Coin TVL, which reached $0.45 in April, it was affected by regulatory pressure. The possibility of experiencing a similar fate as XRP Coin has made investors uneasy. The decline in overall market interest, the negative divergence caused by regulatory uncertainty for Cardano, and the shallow volatility of Bitcoin have resulted in the current price below $0.3.
At the time of writing, the ADA Coin price is trading at $0.28. As for TVL, according to DeFi llama, despite recent regulatory debates, Cardano’s TVL is at $177.83 million as of August 15th, 2023, representing a 250% growth by 2023.
TVL represents the value of the network in general. It reflects the locked assets in the network protocols, which is a reflection of economic activity in the network. If TVL decreases, the price of the respective cryptocurrency also decreases, as exemplified by Solana. With the institutional outflow of funds from the network, Solana’s TVL hit historic lows and the price collapsed accordingly.
ADA Coin Analysis
For Cardano investors, the critical news is the possible delay in sending the summary judgment in the Ripple case to appeal. If the complex process starts today, debates on whether secondary sales are securities will continue until 2025. This will continue to negatively affect ADA Coin investors.
From a technical perspective, the $0.25 support is extremely critical. Investors failed to hold the $0.3 level, but if the $0.25 support is lost, investors may expect new yearly lows. In/Out of Money (IOMAP) data provided by IntoTheBlock indicates that there are approximately 41,000 wallets that have purchased around 1.9 billion ADA coins in the $0.27 range. This suggests that the price can maintain its support area unless there is a negative sentiment triggering sell-offs.
In a potential recovery scenario, $0.32 can be tested.
