Cardano experienced a remarkable first quarter this year, with both the token and the blockchain demonstrating growth in various aspects. This sparked a sense of optimism among investors that had been absent during the previous bearish period. However, after enjoying robust growth in the past week, ADA price has now initiated an intense bearish rally, breaking below crucial price points. This move came after the crypto market experienced a massive selloff yesterday, impacting the Cardano community negatively.
Cardano Receives A Major Blow
The recent downturn in the cryptocurrency market has dealt a major blow to Cardano (ADA), leading to a staggering $1 billion loss in market capitalization. ADA’s price experienced a sharp decline of over 10%, erasing all of its recent gains at its peak.
Despite this, the Cardano-based algorithmic stablecoin, Djed ($DJED), recently celebrated a remarkable achievement as its total circulating tokens surpassed 4 million. Now boasting 4.2 million tokens in circulation, this milestone underscores the growing interest and adoption of Cardano-powered stablecoins even in the market’s turmoil.
Cardano’s performance in the Decentralized Finance (DeFi) sector appears to be on an upward trajectory. The total value locked (TVL) across its 19 protocols has experienced a remarkable 172% quarter-on-quarter increase, soaring from $50 million to $138 million.
Nevertheless, despite these positive advancements, Cardano has yet to secure a prominent position in the rapidly expanding DeFi landscape. Competitors like Arbitrum have already managed to assert dominance, leaving Cardano with more ground to cover in its quest to establish itself within the ever-growing DeFi space.
ADA Price May Decline More If Breaches $0.4
Cardano (ADA) is currently experiencing a pullback, which has reached the breakout level of the neckline in the inverse head and shoulders pattern. If the price rebounds from the neckline, it will indicate that the bulls have successfully transformed the level into support. This development will trigger a surge beyond $0.45. Consequently, the ADA price can begin its ascent toward the pattern target of $0.61. While the $0.51 level may pose some resistance, it is expected to be surpassed eventually.
However, investors need to watch the $0.4 mark closely, as a downward breakout will suggest bearish domination. ADA price may drop below the EMA-100 trend line and take support at $0.37 before sparking a bullish reversal.
As of writing, ADA price trades at $0.41, declining by nearly 2% from yesterday’s performance. The RSI line is attempting to reach its midline, and a drop below the level will open up short positions. However, the SMA-14 trend line has yet to display a bearish sign, hinting that bulls are still in the game with enough buying pressure to hold the ADA price above $0.4.
