Cardano Defends $0.18 Support Level Amid DeFi Growth
Cardano's decentralized finance ecosystem is experiencing growth, with its total value locked (TVL) increasing by over 14 million ADA since August 8. The TVL has climbed from 351.5 million ADA on August 8 to 365.73 million ADA, valued at approximately $66.65 million. This expansion comes after the network's Van Rossem upgrade on July 18, designed to improve smart contract speed and reduce costs.
However, institutional demand for Cardano appears to be weakening. The CME data showed zero Cardano futures trading volume on August 13, with open interest dropping from 32.7 million ADA to 19.7 million ADA. Additionally, Grayscale withdrew its Cardano Trust ETF application on August 10, amidst declining institutional enthusiasm for altcoin ETFs outside Ethereum.
The Cardano price is currently testing the $0.18 support level, which previously acted as resistance in a double-bottom formation. Holding this level could indicate that selling pressure has weakened and potentially open the door for ADA to target the psychological $0.20 resistance. The declining Average Directional Index (ADX) suggests that the bearish move from $0.21 on August 6 is losing strength.