Cardano has registered a new ATH in DeFi Total Value Locked.
Along the broader market, ADA price fell but in recovery mode per capital influx from Bitcoin.
Top market analysts have issued bullish price targets for Cardano.
Cardano has been on an impressive bullish trend since November, riding on the victory of a pro-crypto leader in the United States. The cryptocurrency has recently begun to retest the upper border of a megaphone weekly chart pattern. Notably, the megaphone pattern is usually characterized by a series of higher highs and lower lows. This ends up as two diverging trend lines: one for support and one for resistance.
ADA Holds $1 Support Level
In three days, ADA, which now has a fully diluted valuation of about $45.5 billion and a daily average traded volume of around $4.4 billion, retraced around 25%. During the mid-London session on Tuesday, the large-cap altcoin traded at about $1.01. It currently has a spot price of $1.02, even after registering a price plunge of 9.43% in under 24 hours.
High volatility has led to more than $24 million in liquidation from Cardano’s leveraged market. Most of the liquidations were from long-position traders. Also, the plunge from Cardano’s Futures Open Interest (OI) has exceeded 26%, now hovering around $832 million.
Amidst this situation, Cardano is standing tall as a crypto haven for many investors and traders. Much of its activity could be attributed to crypto cash rotation from Bitcoin .
For a coin that lost its support level around $1.2, where 93,000 addresses purchased more than 2.5 billion ADA, Cardano is performing well. At the same time, the altcoin would need to maintain the support level around $1 to avoid further bleeding towards $0.81.
Last week, Cardano whales as much as 120 million ADA, worth $144 million, for three days. This move is a clear conviction that the altcoin could see some price rally in the future. Whale wallets that held 100 million to 1 billion ADA tokens plunged more funds into the coin.
These whales increased their positions from 3.15 billion to 3.27 billion tokens between December 3 and 6, according to Santiment.
Cardano TVL and Other Activities Resembles 2021 Bull Market
Around the same time, Cardano’s TVL reached $735.7 million, up from yearly lows of $200 million.
This figure is also an all-time high (ATH) for the Cardano network, surpassing its previous record of $494 million in March 2024. In addition, network user activity also soared 3x while Decentralized Exchange (DEX) trading volume hit yearly highs.
Insights provided by Artemis data show that Cardano’s DEX volume had only hit $1.8 million before the US elections. However, it recently exceeded $30 million before settling around $25 to $27 million.
As it stands, the expectation is that ADA could reach as high as $8. With a more optimistic stance, Crypto analyst Lark Davis says the altcoin could in this current bull cycle.
The analyst cited a 213% monthly surge and strong technical indicators as supporting factors. In the near term, Javon Marks forecasts ADA’s price ascending to $2.77, potentially climbing to $5.296 or even $7.82.
He made the forecast in recognition of the 2021 bull run, which is similar to Ali Martinez’s stance. The latter analyst noted earlier that Cardano’s price has been following a fractal pattern to the 2020/2021 bull cycle.
