- ADA price has formed a double-bottom pattern in a low-volume environment.
- Cardano’s DeFi total value locked (TVL) has soared to a record high.
- The crypto fear and greed index has moved to the fear zone of 40.
Cardano price remained in a deep slumber on Tuesday morning as traders waited for the next key catalyst in the crypto industry. ADA was trading at $0.2548, where it has been stuck at in the past few days.
Fear and greed index retreats
There have been no Cardano-specific news in the past few weeks. Instead, the coin has remained in a tight range as investors react to the events in the crypto industry.
The most important news was on the Bitcoin ETF issue. In a ruling last week, a court in the United States ruled that the Securities and Exchange Commission (SEC) must review Grayscale’s NFT proposal.
This was a major thing for two reasons. First, it was the second big loss that the SEC has suffered in the past few months. It had previously lost a lawsuit in which it claimed that Ripple’s XRP was a security.
Read more: How to buy Cardano.
Second, the lawsuit means that there is a high chance that the SEC will accept other Bitcoin ETFs later this year. If this happens, there is a high probability that one or more companies will apply for a Cardano ETF.
Cardano price has also stalled as investors remain fearful in the market. The crypto fear and greed index has moved to the fear zone of 40. In most periods, cryptocurrencies tend to underperform when there is a sense of fear in the market.
Despite the ongoing fear, Cardano’s ecosystem seems to be doing great. For example, its DeFi ecosystem is thriving. Data shows that the total value locked (TVL) in its ecosystem has surged to an all-time high of 771 million ADA tokens. This is a major increase since Cardano started the year with 274 million tokens in its ecosystem.
Cardano price prediction
The four-hour chart shows that ADA price has been in a strong bearish trend in the past few weeks. This decline has seen the coin create an important support at $0.2510, the lowest level on August 23rd and 31st. It has formed what looks like a double-bottom pattern.
At the same time, Cardano has moved below the 25-period and 50-period moving averages. The volume has continued contracting. Therefore, the outlook for the coin is neutral with a bearish bias. This view will be confirmed if it drops below the support at $0.2510. If this happens, the next level to watch will be at $0.200.
Still, we should not discount the double-bottom pattern since it is usually a bullish sign.
