Cardano’s recent price rebound may signal a breakout this summer, with ADA gaining strength.
Cardano is currently 35% below its June high of $0.38, unable to break through key resistances as it tries to recover from the SEC’s onslaught.
But with ADA showing more strength than ever, investor mood changing, and patterns churning, the cryptocurrency may be on pace for a summer breakthrough, as its inventor Charles Hoskinson predicted.
Cardano lost more than half its value, reaching a yearly low of $0.22, after the SEC categorised ADA as an unregistered asset earlier in June. However, since then, the token’s value has gradually recovered, with recent trades on CoinMarketCap showing that it is now trading at $0.29.
According to IntotheBlock’s analysis of on-chain, derivatives, and exchange data, this upward price movement has prompted a mostly optimistic feeling among investors. Whales have also been roused from their sleep by this performance, resulting in frequent huge transactions on the network and suggesting a probable reversal of a trend.
The price chart of Cardano shows both bearish and bullish patterns due to the asset’s recent rebound. Among these patterns, the Power of Three stands out as the most effective approach for spotting trend reversals.
Accumulation, Manipulation, and Expansion are the three stages that make up the Power of Three Patterns. During the Accumulation phase, institutional investors continue to buy Cardano, keeping the price within a narrow range of $0.31 to $0.45.
The subsequent drop after the SEC’s charges is an example of Manipulation, in which smart money uses tactics to push the price in the desired direction. The third phase, growth, occurs when the trend develops traction and overcomes obstacles.
Cardano may be nearing the end of its cycle now that the SEC’s manipulation has been factored in since the cryptocurrency has shown resiliency in the face of unfavourable news such as Celsius’ $26 million ADA sell-off and the delisting rampage.
Cardano may reach the $1 mark this year, representing a spectacular 300% increase from current levels if market conditions hold. Cardano supporters should be aware, however, that the road ahead may not be as easy as they anticipate. The cryptocurrency market is notoriously volatile.
Cardano’s DeFi ecosystem, meanwhile, has been growing and is a primary driver of its growth, notwithstanding ADA’s price performance.
In recent times, Cardano’s DeFi ecosystem has been on fire, setting new records on a regular basis. Cardano’s TVL in ADA has surpassed 564 million ADA, with a current market value of over $161 million, a rise of 180% since the beginning of the year.
With this achievement, Cardano has surpassed even major chains like Ethereum, Solana, and Polygon in terms of its native currency’s rate of growth. As of this writing, Cardano has a DeFi TVL of 18, placing it eighteenth overall.
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