{"id":18690,"date":"2025-12-26T07:27:52","date_gmt":"2025-12-26T07:27:52","guid":{"rendered":"https:\/\/bitunikey.com\/news\/cardano-price-flashes-bullish-reversal-signal-while-tvl-stablecoin-supply-drop\/"},"modified":"2025-12-26T07:27:57","modified_gmt":"2025-12-26T07:27:57","slug":"cardano-price-flashes-bullish-reversal-signal-while-tvl-stablecoin-supply-drop","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/cardano-price-flashes-bullish-reversal-signal-while-tvl-stablecoin-supply-drop\/","title":{"rendered":"Cardano price flashes bullish reversal signal while TVL, stablecoin supply drop"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Cardano price has dropped 60% since its October high as its TVL and stablecoin supply weakened. However, it has been forming a bullish reversal pattern which, if confirmed, could lead to a 45% rally ahead.<\/p>\n<div id=\"cn-block-summary-block_d9b1e84b38c0b4f384730ca5201fbd5e\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Cardano price has dropped by 25% from its December high.<\/li>\n<li>Its stablecoin market and TVL has declined since August.<\/li>\n<li>A bullish reversal pattern has formed on the daily chart.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>According to data from crypto.news, Cardano (ADA) has been in a downtrend, dropping nearly 25% from its December high and 63% from its highest point in October. Its market cap has shed from $35.1 billion to around $12.9 billion at press time.<\/p>\n<h1 class=\"wp-block-heading\">Cardano price dropped as its fundamentals continue to weaken<\/h1>\n<p>According to <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/defillama.com\/chain\/cardano?appFees=false&amp;stablecoinsMcap=true&amp;groupBy=weekly&amp;appRevenue=false\" target=\"_blank\" rel=\"nofollow\">data<\/a> from DefiLlama, the total value locked across all DeFi protocols built on the blockchain dropped to $215.5 million from its August high of $544 million. Declining TVL hints at lower user participation and could point to investors losing confidence in the network\u2019s growth potential.<\/p>\n<p>The total market cap of stablecoins on the blockchain has also dropped, from a November high of $40.48 million to $37.68 million at press time.<\/p>\n<p>Leveraged traders have also seemed to have lost interest in the token. <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.coinglass.com\/currencies\/ADA\/futures\" target=\"_blank\" rel=\"nofollow\">Data<\/a> from CoinGlass shows that ADA Futures open interest has dropped from $1.72 billion observed in October to $651 million when writing.<\/p>\n<p>Together, these deteriorating metrics have kept investors cautious and sentiment fragile, which has weighed heavily on price performance.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Cardano price analysis<\/h2>\n<p>Despite the broader weakness in on-chain stats and investor activity, charts have painted a bullish outlook for the token.<\/p>\n<p>On the daily chart, Cardano price has been forming a falling wedge since early October this year. The pattern is formed of two converging and descending trendlines.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Cardano price has formed a falling wedge pattern on the daily chart \u2014 Dec. 26 | Source: crypto.news<\/figcaption><\/figure>\n<p>Historically, when an asset breaks out of such a structure from the upper side, it often signals that the ongoing downtrend has lost its momentum.<\/p>\n<p>A look at momentum indicators such as RSI, which has formed a bullish divergence, also indicates a potential rebound could be on the way.<\/p>\n<p>For now, Traders will be closely watching the 20-day SMA at $0.39, a break above which would confirm a breakout from the wedge pattern.<\/p>\n<p>In that case, ADA could potentially rally to $0.51, a target calculated by adding the height of the wedge to the pattern breakout price. At press time, it stood nearly 45% above the current price.<\/p>\n<p>On the contrary, a breakdown below the lower trendline of the pattern could lead to a fall to $0.30, a level that has acted as a strong support floor throughout last year.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<div class=\"cn-block-disclaimer\">\n<div class=\"cn-block-disclaimer__icon\">\n            <svg class=\"icon icon-info\" aria-hidden=\"true\"><use xlink:href=\"#icon-info\"><\/use> <\/svg>        <\/div>\n<p class=\"cn-block-disclaimer__content\">\n            Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.        <\/p>\n<\/p><\/div>\n<p><!-- .cn-block-disclaimer --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Cardano price has dropped 60% since its October high as its TVL and stablecoin supply weakened. However, it has been forming a bullish reversal pattern which, if confirmed, could lead&hellip;<\/p>\n","protected":false},"author":1,"featured_media":49,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/18690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=18690"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/18690\/revisions"}],"predecessor-version":[{"id":18691,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/18690\/revisions\/18691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/49"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=18690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=18690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=18690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}