Cardano is a protocol that competes head-on with Ethereum. Since then, the Cardano ecosystem has expanded greatly in the crypto and decentralized finance sectors.
There are currently 24 dApps in the ecosystem, according to dAppradar. It also affects its total value locked, which has been fluctuating with market conditions.
The TVL of Cardano has rocketed up by 150.5% since January first week, according to DefiLlama. As a result, on-chain analysts at TapTools speculated that Cardano might have a very busy few of months. As its TVL has increased in value, the ecosystem’s native token, ADA, has followed suit.
CoinGecko reports that the token’s price has increased by over 3% in the last 24 hours, with monthly gains of over 22%.
TapTools: Near-Term Cardano Outlook Positive
For investors on the Cardano network, TapTools provides a charting, wallet, and portfolio management platform. New research into the Cardano ecosystem predicts a dramatic increase in TVL in the near future. The developers of TapTools point to a number of recent developments as reasons for their optimism.
The first is Ouroboros, the Proof-of-Stake mechanism used by the Cardano ecosystem. According to data available on the Cardano website, this implementation of PoS is mathematically as secure as Proof-of-Work. Strategic alliances, like those featured in TapTools, are another driver of Cardano’s development.
Paima Studios, a Web3 video game developer, joined the ecosystem as a partner not too long ago. Due to this, Cardano is now capable of cross-chain gambling. Given the recent publicity surrounding Grayscale’s GSCPxE fund, ADA could soon see a significant price spike.
ADA Price Seen Climbing To $0.390212
In the near to intermediate future, ADA is set up to have access to a pump at the $0.4192 level. The current support level for the token is $0.3811, providing buyers and sellers with a comfortable cushion over the next few months.
Token price of $0.5871 can be reached if it breaks through the nearby resistance. The price of ADA might drop to $0.3579 if the token ever receives a $0.4192 rejection. TapTools’ latest study, however, may provide ADA bulls with a momentum boost in the days ahead.
ADA total market cap now at $12.5 billion on the daily chart at TradingView.com
Investors can get ahead by keeping an eye on market sentiment and aiming towards $0.4192 for the time being. As of this writing, CoinGecko reports that the overall market capitalization of cryptocurrencies has increased by a measly one percent. If the market remains optimistic, ADA could break over its resistances in the near to short term.
-Featured image from Analytics Insight