- Cardano price has formed a small double-bottom pattern on the 4H chart.
- Cardano’s total value locked (TVL) jumped to an all-time high.
- There are signs that Cardano’s ecosystem is growing recently.
Cardano price moved sideways on Monday even after encouraging events in the ecosystem. ADA was trading at $0.40, where it has been since Sunday evening. This price was ~15% below the highest point this month.
Cardano’s wrapped Bitcoin
Cardano’s ecosystem is doing really well this year as the developers continue building. Early this year, Cardano announced that it would integrate Ethereum Virtual Machine (EVM) capabilities in a bid to increase its interoperability. EVM is a software that processes smart contracts in Ethereum’s ecosystem.
One method of predicting whether a smart chain network is doing well is to look at the performance of its DeFi ecosystem. DeFi matters because it is the best use case for blockchain technology.
Data shows that the total value locked (TVL) in the ecosystem has jumped to a high of A465 million. This is a strong performance considering that it started the year at A268 million. This growth happened because of key dApps like Minswap, Indigo, WingRiders, and Djed Stablecoin.
Minswap is a leading trading platform that makes it possible for people to trade Cardano tokens. Some of the most active tokens in the ecosystem are Meld, AGIX, AASA, and SHEN among others. Its monthly volume jumped to A177 million in March from A167 million in February.
The other important Cardano news is that Wrapped bitcoin cBTC went live on Cardano’s testnet as the network seeks to attract Bitcoin holders to the ecosystem. This means that users can now mint cBTC tokens from the anetaBTC protocol.
This is one way that developers are integrating Bitcoin in mainstream smart contract platforms. The most popular chain that is doing this is Stacks, which makes it possible for developers to build projects with Bitcoin a the payment model.
Cardano price prediction
ADA price has been in a steep downward trend in the past few days. It has managed to move from this month’s high of $0.4617 to a low o $0.3786. On the 4H chart, it has formed what looks like a small double-bottom pattern whose neckline is at $0.40. Also, the coin has moved below the ascending trendline shown in red and the 50-period moving average.
Therefore, because of the double-bottom pattern, Cardano will likely bounce back and retest the lower side of the ascending channel at $0.42. This price is about 7% above the current level. For the next few months, I believe that Cardano will jump to the resistance at $0.50.
