Cardano Price Outlook as DeFi TVL Tanks Despite Leios Upgrade Hype

Cardano (ADA) has not done well for months now. Even when the rest of the market was going up, Cardano’s gains have been somewhat small, and its chart shows a coin that is under stress from bears. But the Leios upgrade is coming up next month, and there was an expectation that this was going to be good for Cardano price. But this might not be the case because even the DeFi TVL is going down.

Cardano’s DeFi TVL Drops Despite Upcoming Leios Upgrade

Data from DeFiLlama shows that the DeFi TVL on Cardano is not in a good place. It has lost more than 23 million ADA tokens in almost three weeks. But this might not just be happening with Cardano because ongoing DeFi hacks are causing havoc, and people are scrambling to exit.

This drop is not doing Cardano price any good. While Bitcoin is surging, Cardano price is down by 0.5% in one week. And what this means is that there is not much activity going on. Sellers might be tired from continuous selling, and buyers are not getting any incentive to buy.

The dropping TVL is also happening despite Hoskinson’s plan to get DeFi on Bitcoin. He said that ADA will be used by those who want DeFi on Bitcoin, but this has not been enough to move the TVL up.

But all this is happening when the Leios upgrade is getting near. It will happen in June, and what usually happens with upgrades like this is that the price goes up. But it only has weeks to the event, and nothing much is going on with the long-term Cardano price forecast.

Cardano Price Outlook as Bullish Momentum Grows

Cardano has been squeezing in a triangle, and this is one setup that is neither bullish nor bearish unless there is a move to either side. Now, the wick is above the upper line, but it has not made a close here for there to be any certainty that it is definitely going up.

If this pattern is favoring bulls, it will make this upward move, but if it is favoring bears, it will go below the line.

From the top to the bottom is a 13% move. A 13% move means that if ADA can just move above the upper line, it will get to $0.28 from where it is now. A previous CoinGape Cardano price analysis had also said it might get to $0.31

Even the indicators show Cardano could go either way. The RSI is neutral at 49. And that is not all, because the AO bars are very small, to show the momentum is weak.

This shows that there is no certainty that Cardano price will go up or down, and it might not make any big jumps until either buyers or sellers win.

It is important to note that Cardano is a highly volatile asset. Do your own research and analysis before making an investment decision.