Despite being one of the cryptocurrencies that has lost the most value among CoinMarketCap’s top 20, Cardano (ADA) remains one of the main networks actively developed on blockchains.
The network remains in third place among blockchains focused on smart contracts. It has witnessed massive growth in its Total Locked Value (TVL) in Decentralized Finance (DeFi), reaching $200 million, according to the DeFi Llama portal.
As the data reveals, Cardano has witnessed significant growth in recent months as transaction volume has increased in tandem.
The Cardano network launched, in 2021, the hard fork Alonzo. The update finally implemented smart contracts functionality on the network.
Then Cardano saw an increase in projects built on the network in 2022. In all, there are 492 projects built on the blockchain, compared to 175 projects at the end of December.
Cardano – most active developers
According to analyst Sarah Tran, the TVL’s rise indicates that new DeFi projects may keep coming.
Currently, there are around 120 active contributors daily working on the development of the network. This makes the ADA blockchain one of the networks with the most active developers.
However, the cryptocurrency price has not been following this development, although Tran indicates that it may have formed a local bottom, according to the Momentum Reversal Indicator (MRI) on the 12-hour chart.
“Cardano has also formed a descending wedge pattern, suggesting that ADA may be awaiting a bullish reversal. The first area of resistance could emerge at the 23.6% Fibonacci retracement level at $1.08, where the 50-hour Simple Moving Average (SMA) is also located,” she said.
Furthermore, she pointed out that the upper bound will act as the next hurdle for the ADA at $1.12. If Cardano’s price manages to cut above that level, a 34% rally to $1.48 is possible.
“However, if selling pressure increases, Cardano’s price could revisit the main line of defense at the lower limit of the current technical standard at $0.91,” she concludes.