Cardano Price Prediction as TVL Adds 14M ADA Even As Institutional Demand Weakens

Cardano (ADA) price is defending the support level at $0.18 as the network’s DeFi Total Value Locked (TVL) adds 14 million ADA coins in one week since August 8. Still, institutional demand for Cardano remains weak, dimming hopes for a strong recovery in the near term.

Cardano’s DeFi TVL Surges

Data from DeFiLlama shows that the TVL on the Cardano blockchain has increased from 351.5 million ADA on August 8 to 365.73 million ADA at the time of writing. The ADA tokens that are locked on Cardano are now worth $66.65 million.

The stablecoin supply on Cardano has also increased from $63 million on August 1 to $67 million at the time of writing.

Still, the DEX volumes have failed to surge in tandem with the TVL and the stablecoin supply, with DeFillama showing that the volumes have dropped from $1.88 million on August 11 to $867,494 at the time of writing.

The rising TVL comes one month after Cardano completed the Van Rossem upgrade on July 18, as earlier reported by CoinGape. The upgrade sought to make smart contracts on Cardano cheaper and faster, while also paving the way for the Leios upgrade.

Institutional Demand for ADA Weakens as CME Volumes Fall

Data from the CME shows that ADA futures recorded zero volumes on August 13, suggesting that institutional trading activity around Cardano is dropping.

CME also shows that the open interest for Cardano futures has dropped from 32,700,000 ADA to 19,700,000 ADA, which also suggests that the volume of regulated derivatives trading around Cardano is cooling.

Grayscale also recently withdrew its application for a Cardano Trust ETF on August 10, per an earlier report by CoinGape. While Grayscale did not explain the reason behind withdrawing the application, it occurred at a time when altcoin ETFs, apart from Ethereum, are recording reduced interest from institutions.

Cardano Price Prediction as Bears Retest Support

The price of Cardano has dropped to confirm whether the previous resistance of a double bottom pattern at $0.18 will hold as support.

If Cardano can hold this price as support, it will suggest that the previous sellers that pushed the price to $0.15 are exhausted. This support could also mark a new entry point for buyers anticipating that the upward trend that started on July 28 will continue towards the psychological resistance of $0.20.

The ADX line that is dropping supports a bullish future Cardano outlook. It suggests that the downtrend from $0.21 on August 6 to $0.18 today, August 14, is becoming weak.

Still, the RSI reading of 50 suggests that the momentum is neutral, and there are inadequate buyers at the support of $0.18 to support a sustained uptrend. If this RSI reading drops below the 50 mark, it will invalidate the bullish thesis.