Cardano Achieves All-Time High TVL of $735.7 Million
Cardano #ADA has experienced a bullish trend since November, influenced by the election of a pro-crypto leader in the United States. The cryptocurrency is currently retesting the upper border of a megaphone weekly chart pattern characterized by higher highs and lower lows.
ADA Holds $1 Support Level
In three days, ADA's fully diluted valuation reached approximately $45.5 billion with a daily average traded volume around $4.4 billion. It retraced about 25%, trading at approximately $1.01 during the mid-London session on Tuesday, with a current spot price of $1.02 despite a 9.43% drop within 24 hours.
The volatility resulted in over $24 million in liquidations in Cardano's leveraged market, primarily affecting long-position traders. The Futures Open Interest (OI) for Cardano has dropped over 26%, now around $832 million.
Despite these challenges, Cardano remains attractive to many investors, likely due to cash rotation from Bitcoin #BTC. Following a loss of support at $1.2, where 93,000 addresses bought more than 2.5 billion ADA, maintaining support around $1 is crucial to prevent further declines toward $0.81.
Last week, Cardano whales acquired up to 120 million ADA worth $144 million over three days, suggesting confidence in future price rallies. Whale wallets holding between 100 million to 1 billion ADA increased their holdings from 3.15 billion to 3.27 billion tokens between December 3 and 6, according to Santiment.
Cardano TVL and Other Activities Resemble 2021 Bull Market
Cardano's Total Value Locked (TVL) reached $735.7 million, up from yearly lows of $200 million, marking an all-time high for the network, surpassing its previous record of $494 million in March 2024. Network user activity tripled, and Decentralized Exchange (DEX) trading volumes hit yearly highs.
Data from Artemis indicates that DEX volume rose from $1.8 million before the US elections to over $30 million, stabilizing around $25 to $27 million.
Analysts project ADA could reach as high as $8, with optimists predicting prices of $10 in the current bull cycle. Lark Davis cites a 213% monthly surge and strong technical indicators as supporting factors, while Javon Marks forecasts ADA's price could ascend to $2.77, potentially reaching $5.296 or $7.82. Ali Martinez also noted that Cardano’s price follows a fractal pattern similar to the 2020/2021 bull cycle.