Cardano, a popular cryptocurrency, is facing potential challenges in its decentralized finance (DeFi) ecosystem. Recently, a significant amount of ADA (the native coin of Cardano) has been locked in DeFi protocols, leading to a temporary decrease in market supply. This could result in increased selling pressure on ADA as investors look for alternative assets.
The decrease in Total Value Locked (TVL) in Cardano’s DeFi ecosystem indicates reduced liquidity and activity, which may indicate a decline in investor confidence. As a result, some analysts are forecasting that the price of Cardano could drop as low as $0.30 in the near future.
Despite the bearish outlook, there is a glimmer of hope for Cardano bulls. IntoTheBlock’s analysis shows a potential sell-wall at $0.40, which could provide support for the cryptocurrency in the short term.
Overall, the current situation in the Cardano DeFi ecosystem highlights the importance of monitoring market trends and investor sentiment to anticipate potential price movements in the cryptocurrency market.