Despite facing regulatory hurdles, Cardano (ADA) has been steadily recovering from the SEC’s attack, demonstrating resilience and gaining momentum.
With positive investor sentiment and promising patterns emerging, the token is poised for a potential summer breakout, as envisioned by its founder Charles Hoskinson. Additionally, Cardano’s DeFi ecosystem continues to flourish, further fueling its growth.
After the SEC classified ADA as an unregistered security, Cardano experienced a significant decline, reaching its lowest point of the year at $0.22.
However, the token has since made a steady recovery, currently trading at $0.29. This upward price movement, accompanied by bullish sentiment among investors, suggests a possible trend reversal.
Among the patterns observed in Cardano’s price chart, the Power of Three pattern stands out as a potential indicator of a trend reversal.
This pattern consists of three phases: Accumulation, Manipulation, and Expansion. Cardano has shown signs of moving into the expansion phase, where the trend gains momentum and breaks through resistance levels.
Considering the positive factors aligning for Cardano, there is a possibility of the token surpassing the $1 milestone this year, representing a significant 300% surge from current levels. However, the crypto market can be unpredictable, and the journey may encounter challenges along the way.
Despite ADA’s price performance, Cardano’s DeFi ecosystem has been flourishing. The total value locked (TVL) in ADA has reached over 564 million ADA, equivalent to approximately $161 million.
This growth solidifies Cardano’s position as one of the fastest-growing networks, surpassing even established chains like Ethereum, Solana, and Polygon.