Bitcoin’s price movement, often regarded as a weathervane for the broader cryptocurrency market, has been going through a whirlwind of late. The ongoing turbulence near key levels has sent shockwaves through the crypto ecosystem, creating a domino effect that affects other digital currencies, including Cardano’s ADA. As concerns about rate hikes and the US debt ceiling continue to rise, ADA is facing volatility with no clear indication.
Cardano’s bearish backdrop amid bullish data
Marking a remarkable advancement, Cardano has strengthened its position in the decentralized finance (DeFi) arena by rising to the rank of the ninth largest decentralized exchange (DEX) chains globally in terms of trading volume. According to information from DeFiLlama, Cardano’s trading volume has crossed the $12 million mark in the past 24 hours, with an average weekly volume of around $50 million.
This feat positions Cardano comfortably above Fantom, positioning Tron as his next rival. Cardano’s growth in the DeFi space is a testament to the network’s powerful and effective architecture that has attracted a plethora of projects, developers, and users.
A major factor in Cardano’s triumph in the DEX landscape is Minswap. This platform has established a distinct foothold within Cardano’s ecosystem, contributed significant DEX volume and played a pivotal role in catapulting the network into the top 10. Minswap’s easy-to-use interface, coupled with the security and speed of Cardano’s network ensures a smooth trading experience that attracts traders all over the world.
Nevertheless, Cardano’s rise in the top 10 DEX chains is not only attributed to traditional DeFi projects. One notable trend fueling network expansion is the rise of meme coins on Cardano. Fueled mostly by social media hype and community involvement, these tokens have accounted for a significant portion of the network’s recent trading volume.
Also Read: Michael van de Poppe marks bullish and bearish case for Bitcoin as it loses critical levels
How does Cardano perform from $0.36?
Over the past three days, Cardano has been on a downward trajectory, touching the uptrend line on May 21. This is a critical level to watch as any break above it would suggest the bulls are holding. At the time of writing, the ADA price is trading at $0.3632, down more than 1.9% in the past 24 hours.
The ADA price made a robust bearish reversal near $0.377, signaling a massive panic in the market that prompted sellers to open short positions. If bulls manage to push the price above the 20-day EMA at $0.3664, it will imply diminishing selling pressure. The ADA/USDT pair is expected to gain momentum once it surpasses the 200-day EMA at $0.375 on the 4-hour price chart.
Conversely, if the price continues to fall from the current 23.6% Fib level and tumbles near $0.36 and falls further, it would mark the start of a more serious correction towards $0.30.
