CARDANO | News

Cardano may experience a potential upswing of 14%, reaching $0.70, supported by the Total Value Locked (TVL) maintaining levels above $425 million.

CARDANO | News On Tuesday, Cardano’s Total Value Locked remained above the $425 million threshold, showing a minor retreat from the record set on December 14.

Often hailed as the “Ethereum killer,” this asset provided holders with a noteworthy 11% gain over the week. If the ongoing uptrend persists amid profit-taking, there is potential for ADA’s price to ascend towards the $0.70 target.

Cardano (ADA) has seen an 11% price surge in the past week, buoyed by the positive momentum of Bitcoin (BTC). On-chain metrics indicate a favorable outlook for the altcoin. Over the last three months, Cardano has displayed a correlation of 0.89 with Bitcoin, demonstrating a strong alignment with the market-leading cryptocurrency. Furthermore, the total value of assets locked in the Cardano chain remains robust, hovering near its recent peak of $444 million.

The Total Value of Locked Assets (TVL) within a blockchain serves as a key indicator of the chain’s significance and the demand it commands among market participants. On Tuesday, Cardano’s TVL exceeded $425 million, reinforcing a positive outlook for the asset’s importance in the ecosystem. The DeFiLlama chart illustrates that Cardano’s TVL reached its pinnacle at $444 million on December 14 last

The Network Realized Profit/Loss (NPL), a metric on the blockchain that discerns whether Cardano transactions on a specific day resulted in profits or losses, indicates that ADA holders have been involved in profit-taking from December 4 to 19. Notably, when examining transactions from large wallet addresses involving $100,000 or more, it becomes evident that substantial ADA token holders are capitalizing on gains in the asset.

On December 17, Cardano’s price once again embarked on an upward trajectory, showcasing resilience despite instances of profit-taking. This resilience underscores the robustness of Cardano’s overall upward trend. An additional influential factor contributing to these gains is the correlation between ADA and Bitcoin. According to Macroaxis data, Cardano exhibits a three-month correlation of 0.89 with Bitcoin. Consequently, an upswing in Bitcoin’s value is mirrored in ADA’s performance. The so-called “Ethereum killer” is closely aligned with the ascent of Bitcoin.

The Significance of Total Value Locked (TVL)

Total Value Locked in a blockchain is a key metric reflecting the value of assets staked or utilized within the network. For Cardano, TVL serves as a barometer of the platform’s relevance and demand among market participants.

TVL Surpasses $425 Million

As of the latest data, Cardano’s TVL has not only breached the $425 million mark but has also maintained a robust position above this threshold. This accomplishment is significant, as it not only supports the platform’s standing within the crypto ecosystem but also sets the stage for a potential price rally.

• Analyzing the DeFiLlama chart provides additional insights. Cardano’s TVL reached a recent peak of $444 million on December 14, showcasing a clear upward trajectory. Despite a subsequent pullback to $425 million, this data hints at the platform’s resilience and attractiveness to investors.

• The optimism surrounding Cardano’s potential 14% rally to $0.70 is grounded in the correlation between TVL and price movements. A TVL holding above $425 million acts as a strong indicator for the asset’s relevance and demand, making it more likely for Cardano’s price to experience an upward surge.

ADA’s Correlation with Bitcoin

Another pivotal factor contributing to this bullish projection is Cardano’s correlation with Bitcoin. Over the last three months, Cardano has demonstrated a correlation coefficient of 0.89 with Bitcoin. This strong alignment suggests that Cardano tends to move in tandem with the largest cryptocurrency by market capitalization.

As Cardano enthusiasts eagerly await the potential 14% rally to $0.70, the synergy between TVL and price movements, coupled with Cardano’s correlation with Bitcoin, paints a promising picture for ADA holders. The platform’s resilience and consistent demand, as reflected in TVL metrics, position Cardano as a contender for positive price movements in the near future. However, as with any market analysis, it’s essential for investors to monitor developments and market dynamics for a well-informed approach to their Cardano investments.