Cardano blockchain is showing impressive fundamental progress

When it comes to cryptocurrencies, there are often discrepancies between the fundamentals of a blockchain and the price of the associated cryptocurrency. A current example of this is the development of Cardano (ADA). While Cardano blockchain is showing impressive fundamental progress, the ADA coin has recently experienced a bearish trend. But what does this mean for investors and what is the outlook for further Cardano price forecasts?

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Cardano Blockchain Activity Explodes: Community Trust and Engagement Continues to Rise

Since the beginning of 2023, Cardano has presented remarkable figures in terms of “Total Value Locked” (TVL). The ADA TVL has multiplied from $60 million to an impressive $190. At its peak, this fundamental indicator could even quadruple for Cardano. But what exactly is this TVL and why is it so important for the further Cardano forecast?

The TVL indicates the total value of all tokens locked in a blockchain protocol. It serves as an indicator of trust and participation in a network. A rising TVL indicates that more and more users and investors have confidence in the network and are willing to commit their funds there in the medium to long term. For Cardano, a high TVL means that the blockchain is actively used and that many users and developers demonstrate their trust in the network.

Crypto analysis firm Sentiment also examined this development and found that despite TVL’s impressive growth, the ADA coin price has not increased at the same rate. This could indicate that the ADA coin is currently undervalued relative to the fundamental strength of the Cardano blockchain.

So the question arises: Why isn’t the ADA coin price following suit? Two of the reasons for this are general market volatility and external factors and, in this context, especially the dispute with the American SEC.

Current technical analysis for Cardano (ADA)
After an impressive start to the year in which the ADA coin increased by over 90 percent, the current trend is pointing downwards again.

At the beginning of the year, everything seemed rosy for ADA. However, since the peak, the coin has lost over 45 percent of its value and is now back to the level it was before the rise. One reason for this development could be the recent harshness of the US Securities and Exchange Commission towards the crypto scene. The uncertainty caused by the authorities’ actions has had a lasting impact on the ADA coin price.

A look at the chart shows a clearly negative trend line for ADA over the past few months. The coin was rejected at resistance several times. However, it is currently finding support at $0.25. But what do the indicators say?

The Relative Strength Index (RSI) is a technical indicator that measures the speed and change of price movements. A high RSI indicates an overbought market situation, while a low RSI indicates an oversold situation. At ADA, the RSI does not yet show a bottom. This makes further price declines possible.

Another important indicator is the exponential moving averages (EMAs). ADA recently attempted to rise above the important EMA 200 but without success. Both indicators, both the RSI and the EMAs, are above the ADA price, signaling bearish sentiment for the near future.

Conclusion and further forecast for the ADA price

Technical analysis shows that ADA is currently facing some challenges. The recent developments surrounding the SEC and the general market situation have influenced the coin. It will be interesting to see how the market performs in light of further news from the SEC.

Fundamental analysis shows that Cardano is currently a strong and growing blockchain valued by many users and developers. However, the ADA coin price has not yet reacted to the extent that the fundamentals would suggest. For investors, this could be an opportunity to get more involved with Cardano and, if convinced, invest in ADA with a savings plan.