Cardano (ADA) price is trading 45% below its yearly peak. The smart contract cryptocurrency is facing strong headwinds due to multiple fundamental factors. ADA price has immensely underperformed Bitcoin in the last two years. The selling pressure on the coin can also be attributed to the increased regulatory scrutiny since the start of this year.
On Monday, digital assets are showing a very positive price action as the Bitcoin price is trading above $27,100. Due to the 2.5% surge in the biggest cryptocurrency, ADA coin is also experiencing increased buying pressure. At press time, the coin is changing hands at $0.254 after a 2.67% price increase.
Technical analysis of the ADA/BTC pair reveals the strength of Charles Hoskinson's brainchild against the biggest digital asset. Currently, the pair is trading sideways after a brutal downtrend. However, the pair is yet to signal any strength as the bears remain in control. In terms of Bitcoin, ADA is currently 85% down from its 2021 peak.
The following chart shows a sideways price action of the ADA/BTC pair. After sliding below the middle of the trading range, the pair is now targeting the range lows which lie at 0.00000872. This means that Cardano price may slide another 6.4% against Bitcoin in the coming days.
The Cardano blockchain's total locked value (TVL) has shown significant growth in 2023. However, for the past 2 months, the TVL has started to decrease. According to the latest on-chain stats, there is $151.85 million locked on Cardano. This is around a 30% decline since the yearly peak of $209 million which was hit in July.
The decrease in TVL corresponds to a decreased network activity. This has also put a downward pressure on ADA price, which is the native asset of the whole Cardano ecosystem. Currently, Miniswap is the biggest DEX on Cardano with $39.5 million locked in the protocol. The collaterized debt protocol Indigo is the 2nd largest dapp with $34.8 million TVL.
ADA to USD price has been in a downward spiral this year. Technical analysis on the daily timeframe reveals that the pair is attempting to breakout of the downward trendline. This breakout may send the price towards $0.30 resistance level which is around 20% above the current price.
However, long- term Cardano price prediction remains bearish as the coin is yet to break the bearish market structure. ADA price needs to gain strength above $0.40 level to change its bearish outlook. This can only happen if the Bitcoin price stabilizes above $31,000 in the coming weeks.
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