Cardano Price as Hoskinson Predicts ADA Will Rival XRP Ledger After Leios

Cardano (ADA) price is down by 4% today, July 6, to trade at $0.18 at the time of writing. This drop makes ADA the biggest loser among the top ten largest cryptos by market cap as ongoing long liquidations weigh on the price.

But amid the ongoing decline, Charles Hoskinson has mapped out how Cardano is going to challenge the XRP Ledger in terms of speed, a plan that could aid ADA’s price recovery if it pans out.

Hoskinson Says Cardano Will Match XRPL’s Speed After Leios

Hoskinson was speaking in an interview with David Gokhshtein, where he said that the Leios upgrade will increase the speed of the Cardano network by 60 times, and this could make it as fast as the XRP Ledger.

“Leios will be a 60X in terms of throughput inside the system. So, we’re good. We’re as performant as XRP. We’re okay,” Hoskinson said.

In the same interview, Hoskinson admitted that Leios could bring more users to Cardano, and this will increase the network’s Total Value Locked (TVL) as well as the transaction volumes.

Prior to this interview, Hoskinson had warned that the DeFi TVL on Cardano could collapse if the governance members do not vote to approve the upgrades. His sentiments came after two projects on Cardano: TapTools and JPG Store, shut down.

Cardano Price Outlook as Bears Defend 50-day SMA Resistance

The price of Cardano has gained by 28% from $0.14 on June 30 to $0.18 on July 6. But this uptrend paused when the price reached the 50-day SMA resistance of $0.188.

Cardano needs to move above this resistance and make three straight closes above it for the uptrend that began on June 30 to continue.

The RSI reading of 59 supports a bullish long-term Cardano price forecast because it suggests that bulls have a good grip.

If ADA moves above $0.18, the next target for price will be the 100-day SMA level of $0.23.

However, if selling pressure increases because of some traders booking profits after the price rose by 28% in seven days, ADA could drop to the support level of $0.15.

Cardano’s Long/Short Ratio Surges as Traders Flip Bearish on Price

Data from Coinglass shows that Cardano’s long/short ratio has dropped to 0.88. This is the lowest point that this ratio has dropped to since June 30.

This declining ratio suggests that many traders are betting that the price of Cardano will drop after its rise paused at the 50-day SMA level of $0.18.

Cardano’s open interest has also dropped by 10% today, July 6, to $460 million at the time of writing. This drop comes after $1.42 million in long liquidations.

The declining OI and the long liquidations are creating room for short sellers to dominate the Cardano market. But this could end up making the price rise if spot buyers return and push Cardano higher, forcing the short sellers to also buy in order to close their positions.

Cardano DeFi TVL Sheds 104M ADA

Data from DeFiLlama shows that the TVL on the Cardano network has dropped from 566 million ADA on June 30 to 462 million on July 6.

This TVL has shed 104 million ADA within one week, and these unlocked tokens could find their way back into circulation and add to the bearish headwinds that are facing Cardano price.

The DEX volumes on Cardano have also seen a similar decline, after moving from $12 million on July 4 to $$982,000 on July 6.