The cryptocurrency market took a hit recently after Bitcoin plummeted below $100,000 following the introduction of new tariffs by President Trump. These tariffs included a 25% tax on imports from Canada and Mexico and a 10% tax on Chinese products, sparking concerns of retaliation and causing global market turmoil. As a result, altcoins like Cardano experienced a sharp decline in their DeFi activities, leading to increased negative pressures and keeping the price of ADA within a limited range.
Cardano’s Total Value Locked (TVL) has seen a significant drop, with the price of ADA falling by 15% over the past week. According to Coinglass, more than $33 million in total liquidations were recorded, with a large portion of that coming from investors closing their long positions in the last 24 hours. The TVL in the Cardano network has plummeted to $355 million from a high of $593 million earlier this year, representing a loss of about $238 million in assets.
The decline in Cardano’s price has also led to a decrease in the value of ADA tokens, dropping to 445 million from a peak of 585 million. This downward trend in DeFi activity could potentially fuel Cardano’s bearish trend, although traders are advised to monitor any uptick in DeFi activity as it could signal a rally in the future.
The recent launch of the Plomin hard fork has generated excitement among Cardano supporters, with hopes of its positive impact on ADA accumulation and price trends. The activity of large ADA holders is also crucial, as their significant purchases could boost market sentiment. Additionally, the correlation between ADA and Bitcoin may work in ADA’s favor in the mid-to-long term, especially as Bitcoin stabilizes around $100,000 post sell-off.
As the ADA price experiences a downward correction after a strong upswing in recent weeks, investors are eyeing a ‘Buy the Dip’ opportunity. Whales are looking to accumulate more as ADA forms a dip in the price chart. The daily price chart shows an upward correction after dropping to $0.50, with ADA currently trading at $0.79. Buyers are attempting to hold the price at $0.80, but if sellers drive the price down, the ADA/USDT pair may retest $0.50. Strong resistance is expected around $0.80, with a potential return to a price above $1 if surpassed.
In conclusion, the recent market crash and decline in DeFi activity have had a significant impact on Cardano’s price and total value locked. However, with potential positive developments like the Plomin hard fork and the correlation with Bitcoin, there is optimism for a recovery in the future. Traders should monitor market trends closely for potential buying opportunities amidst the volatility.