Cardano (ADA) Price Threatens Bearish Breakout Amid Stagnating TVL

Following a sharp decline close to its annual low of $0.47, the price of Cardano (ADA) has rebounded towards $0.50. Nevertheless, the Cardano price remains...

Cardano price ADA struggles in corrective pattern, potentially leading to breakout or breakdown.

📷Joel Frank Last updated: January 19, 2024 05:57 EST | 2 min read

📷Cardano (ADA) Price Threatens Bearish Breakout / Source: TradingView

After nearly hitting fresh lows for the year below $0.47, the Cardano (ADA) price has recovered back towards $0.50. However, the Cardano price continues to struggle within a corrective pattern.

Indeed, at current levels, ADA remains lower by roughly 27% since hitting multi-year highs in the upper $0.60s in December.

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Since pumping in December and igniting excitement about Cardano’s web3 ecosystem, the blockchain’s total value locked (TVL) has stagnated.

TVL refers to the dollar amount of crypto locked within smart contracts on a blockchain.

Cardano last had a TVL of around $427 million, down from highs of nearly $500 million in December.

Stagnating TVL comes as the broader crypto market suffers a “sell-the-fact” reaction to last week’s spot Bitcoin ETF approval, and amid macro headwinds.

So does the Cardano price face a breakout or a breakdown ahead?

Cardano Price Prediction – Where Next for ADA?

The Cardano price has been in a bearish trend since early 2024 when it snapped a short-term uptrend.

Confirmation of this downtrend came last week when the Cardano price rejected a retest of this prior support uptrend.

The Cardano price is now increasingly threatening a break to the south of the key long-term support at $0.46.

A breakdown under here would turn near-term price predictions substantially more bearish.

If broader market sentiment takes a turn for the better, Cardano could yet see a comeback.

ADA Alternative to Consider – Sponge V2 ($SPONGEV2)

Cardano (ADA) could deliver holders gains in the region of 10x this bull market. That’s not bad, but many meme coin investors are aiming higher, i.e. for gains in the region of 100x.

They should look no further than Sponge V2 ($SPONGEV2).

Sponge V2 is the reincarnation of the legendary Spongebob Squarepants-themed $SPONGE token, which reached a market cap of nearly $100 million earlier in 2023 and delivered gains to its earlier investors in the region of 100x.

Here is the tweet from the official Sponge V2 Twitter account

$SPONGE token holders will be able to stake their tokens to receive an equivalent amount of $SPONGEV2 tokens, as well as to start earning staking rewards (paid out in $SPONGEV2) with a minimum APY of 40%.

Over $5 million worth of $SPONGE tokens have already been staked and are gaining an APY of over 300%.

Here is another tweet from the official Sponge V2 Twitter account

$SPONGEV2’s main advantage over $SPONGE is that it will power a new play-to-earn game, the details of which are yet to be released.

But we do know that there will be a free version and paid version of the game.

Hype surrounding Sponge V2 has driven significant gains in the price of the original Sponge token in recent weeks.

$SPONGE gained another 20% on Friday to near its all-time highs just above $0.0012.

The meme coin is up an impressive near 10x since the start of November.

At a still tiny market cap of $26.5 million, the meme coin has a lot of potential upside as traders keep flocking to Sponge V2.

Visit Sponge V2 Here. [Note: for the link, please replace this text with the actual link to Sponge V2.]

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilize affiliate links within our content and receive a commission.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Q&A

1. What is total value locked (TVL) in cryptocurrencies?

TVL refers to the dollar amount of cryptocurrency locked within smart contracts on a blockchain. It provides an indication of the level of activity and usage within a specific blockchain ecosystem.

2. Why has Cardano’s TVL stagnated?

Cardano’s TVL has stagnated due to the broader crypto market’s “sell-the-fact” reaction to the spot Bitcoin ETF approval and macro headwinds. These factors have affected investor sentiment and contributed to the slowdown in Cardano’s TVL.

3. What is the current price prediction for Cardano (ADA)?

The current price trend for Cardano is bearish, with the price threatening to break below the key long-term support at $0.46. If this breakdown occurs, it could lead to more bearish price predictions. However, if broader market sentiment improves, Cardano could see a comeback.

4. What is Sponge V2 ($SPONGEV2) and why should investors consider it?

Sponge V2 is the reincarnation of the Spongebob Squarepants-themed $SPONGE token. It offers staking rewards with a minimum APY of 40% and will power a new play-to-earn game. The hype surrounding Sponge V2 has driven significant gains in the price of the original Sponge token, making it an attractive alternative for investors seeking higher gains.

Future Outlook and Investment Recommendations

Based on the current trend, it is crucial to monitor Cardano’s price closely. If the price breaks below the key support level at $0.46, it could lead to further bearish sentiment in the short term. However, if market conditions improve, there is a possibility of a comeback for Cardano.

As for Sponge V2, investors should carefully evaluate its potential before making any investment decisions. While past performance might indicate potential upside, it is essential to consider the risks associated with meme coins and high-risk assets.

🔮 It’s always advisable to conduct thorough research and consult with a financial advisor before making any investment decisions in the volatile crypto market.

References

1. Cardano Price Prediction: ADA Dumps 75%, Could ADA Hit $1 in 2024?
2. Crypto Analyst Predicts Major Price Shift for Cardano (ADA)
3. 3 Things Web3 Founders Think Will Happen in 2024
4. Arbitrum’s Total Value Locked Surges Past $25 Billion as Token Nears $2
5. Manta Pacific Flips Base, Becoming Fourth Largest Layer 2 Solution as TVL Surges to $845 Million

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