Sign Up on MEXC
Highlights
- Cardano price crashed as the sell-off in the crypto industry continued.
- The total value locked in the DeFi ecosystem has dropped by $263m this year.
- Cardano’s liquidations jumped to almost $32 million on Monday.
Cardano price joined other altcoins in a strong dip on Monday. Its crash also happened after the network shed over $263 million from its DeFi total value locked. So, how low can the ADA price crash before starting its recovery phase?
Cardano Price Plunges As DeFi TVL Plunges
DeFi Llama shows that the TVL in the DeFi industry has crashed to $330 million from the year-to-date high of $593 million. This drop means the network has lost about $263 million in locked assets from the highest level this year.
This decline is partly because of the ongoing Cardano price crash. It has also dropped in ADA terms, moving to a low of 413 million ADA tokens, down from this year’s high of 618 million.
Further data shows that he amount of stablecoins in the network has continued falling. It has moved to about 23 million ADA tokens, down from this year’s high of 25 million tokens.
To be clear: other blockchains have shed substantial assets as the crypto sell-off intensifies. For example, Ethereum’s TVL has dropped by over 21% in the last 30 days. Tron, BNB Chain, Base, and Arbitrum’s TVL have dropped by over 15% in the same period.
ADA Liquidations Jumped to December Levels
The ongoing ADA price crash has also led to a big increase in liquidations. The 24-hour liquidations jumped to almost $32 million, the highest increase since December 9 last year.
The ongoing Cardano coin plunge is mostly because of the rising fear of inflation in the US after Donald Trump launched tariffs on key trade partners like Mexico, Canada, and China. These tariffs will likely lead to higher inflation and interest rates.
ADA Price Analysis: How Low Can Cardano Go?
The daily chart shows that the Cardano price has crashed from last year’s high of $1.3282 to a low of $0.5570 on Monday. It moved below the key support level at $0.8285, its lowest level on December 30, and the neckline of the double-top pattern at $1.1645. A double-top is a popular bearish chart pattern.
Cardano has also dived below $0.8097, its highest swing in March 2024, while the 50-day and 100-day Weighted Moving Averages (WMA) crossed each other.
Key Levels To Watch
There are signs that Cardano will continue falling in the near term, with the next target being at $0.5570, its lowest level on Monday, which is about 22% below the current level. A drop below that level will point to more downside to $0.3100, its 2024 low, which is about 55% below the current level.
Conversely, the bearish ADA price forecast will become invalid if it moves above the key resistance at $0.8285, the double-top’s neckline.
Frequently Asked Questions (FAQs)
1. Why has the Cardano price crashed?
2. How low can the ADA coin price fall?
3. Can the ADA price rebound?
- SEC’s Paul Atkins Pushes for On-Chain Capital Raising Without Uncertainty
- SEC Delays Decision On Staking For BlackRock’s Ethereum ETF
- SEC Delays Decision on Franklin Templeton’s Solana and XRP ETFs
- BNB Hits New ATH As Binance Partners With $1.6T Franklin Templeton
- Crypto Market, S&P 500 Rally as PPI Data Fuels Rate Cut Hopes
- Pump Price Forecast as $12M Buyback Fuels Scarcity — Is $0.01 in Sight?
- SUI Price Prediction as Mysten Labs Meets SEC Ahead of ETF Decision—Is $7.5 Next?
- Can Dogecoin Price Hit $1 as Derivative Volume Jumps Ahead of DOGE ETF Launch
- Bitcoin Price Prediction Eyes $150K as Trump Calls for Aggressive 100 BPS Rate Cut
- Solana Price Prediction: Can Nasdaq Listing and $94M Holdings Propel SOL Toward $400?
