On-chain growth, increased DeFi activity, and positive technical indicators suggest a potential breakout in the price of ADA.
– ADA’s price initially dropped due to the SEC’s classification of it as a security in lawsuits against Binance and Coinbase.
– However, Cardano’s network has been making progress, with increased DeFi activity after the implementation of the scalability upgrade Hydra.
– The total ADA deposited in DeFi applications on Cardano has reached two times its peak value during the 2021 bull market.
– Trading volumes on Cardano decentralized exchanges have also seen a significant uptick since the Hydra upgrade.
– ADA is considered one of the most decentralized L1s based on the Nakamoto coefficient, which could work in its favor regarding its security classification.
– On-chain analytics suggest a potential price rally, as buyers are scooping up ADA on dips and the funding rate for perpetual swap contracts shows most traders holding short positions.
– Technically, ADA/USD has formed higher lows, indicating a positive trend if the $0.30 resistance level is flipped into support.
– The ADA/BTC pair shows signs of a potential bottom, with oversold conditions and testing of a long-term support and resistance level.
– Despite challenges from the SEC lawsuit and delistings, ADA’s progress and positive technical indicators suggest a potential recovery in the future.