Cardano's ADA token has experienced a significant decline, dropping 40% from its August peak. Technical analysis reveals bearish patterns, including a head-and-shoulders and inverse cup-and-handle formation. The token's price has fallen below critical indicators such as the Supertrend and Ichimoku cloud, with RSI and MACD suggesting ongoing weakness.
The DeFi ecosystem on Cardano has also shown signs of deterioration. Total Value Locked (TVL) has decreased by 20% over the past month, now standing at $275 million. Additionally, decentralized exchange (DEX) volume has plummeted to $93 billion in October, a stark contrast to the $424 million recorded in December. The stablecoin supply on Cardano's network is currently $35 million, and the probability of a spot ADA ETF approval has decreased to 68% on Polymarket.
Cardano Faces Bearish Outlook as DeFi Metrics Decline
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