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Highlights
- Cardano price is being boosted by the rising total value locked in its DeFi protocols.
- The total value locked has jumped to a record high of $619 million.
- The coin has formed a bullish pennant chart pattern on the daily chart.
Cardano price is about to make a strong bullish breakout, which could push it substantially higher in the coming days. The ongoing crypto bull run and its strong fundamentals and technicals are helping to drive this rally. So, will the ADA price double as the total value locked in its DeFi ecosystem hits a record high?
Cardano Price Could Explode As DeFi TVL Spikes to New Highs
Cardano could benefit from the ongoing ecosystem boom in its DeFi ecosystem. Data by DeFi Llama shows that the total value locked (TVL) in the ecosystem has jumped to a record high of $619 million.
This is a strong rally considering that the network had just $200 million in assets in September this year. Liqwid, the biggest DeFi network in its platform has gained 290% in the past 30 days to over $175 million. Similarly, assets in Minswap, Indigo, and Lenfi have jumped by over 120% in the same period.
The caveat, however, is that the ongoing surge in Cardano’s TVL is being driven by the ADA price surge. In ADA terms, the TVL has remained stagnant at around 630 million, where they have been in the past few months.
Cardano Technical Analysts: ADA Is Primed For Breakout
Crypto analysts are upbeat that the Cardano price is about to explode higher soon. In a post, Cardano Hieronymous estimated that Cardano could jump to $12.5 if Bitcoin price jumps to $250,000. That would be a significant move since the coin would need to jump by 1,100%.
Technically, there are signs that the coin is preparing a massive breakout in the coming days. Looking at the daily chart, the coin has moved comfortably above the important resistance level at $0.8088. This was a notable level since it was the upper side of the cup and handle pattern, a popular continuation sign.
The coin formed a hammer-like pattern earlier this week, which explains why it has bounced back. A hammer is a common bullish reversal candlestick pattern made up of a small head and a longer lower shadow.
Cardano has also formed a bullish pennant pattern, which happens when an asset forms a long vertical line and a triangle. On top of this, it remains above the 50-day and 200-day moving averages.
Therefore, more ADA price upside will be confirmed if the coin jumps above the year-to-date high of $1.1530. If this happens, it means that the coin could jump to $2 in the next few days.
On the flip side, a drop below the lower side of the hammer at $0.8720 will invalidate the bullish view and point to a drop to $0.80, the upper side of the cup and handle pattern.
Frequently Asked Questions (FAQs)
1. Can Cardano price double from $1.06 to over $2?
2. Why is Cardano’s DeFi TVL soaring?
3. Which are the other alternatives to Cardano?
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