Cardano Price Forecast as DeFi TVL on Cardano Doubles Since Start of Year – $1 ADA Incoming?
The cardano price has gained by 2.5% in the past 24 hours, reaching $0.398260 following a 1.5% rise for the market as a whole. This level makes for an 11% rise in a fortnight and a 35% increase in the last 30 days, with ADA's price being helped on by the launch of Cardano-based stablecoin Djed last week.
The arrival of Djed has stimulated extra demand for ADA, which is one of the main reserve tokens for the new algorithmic stablecoin. It has also resulted in more use of Cardano itself, with the layer-one network seeing its total value locked (TVL) rise by more than 100% since the start of January.
ADA's indicators suggest that it's a good time for the altcoin right now, with its 30-day moving average (red) close to overtaking its 200-day (blue). If it does rise above the longer term average form a golden cross, the coin could be in line for further gains.
At the same time, ADA's relative strength index (purple) continues to hover around the 60 mark. It looks like it's in a position to continue rising again, with the RSI currently rebounding each time it suffers a dip.
As noted above, ADA has been doing well largely because of the launch of the Djed (DJED) stablecoin. So far, Djed's reserve have taken 30.5 million ADA out of circulation, with this total likely to continue rising in the days and weeks to come.
In other words, demand for ADA is rising, while it's supply is shrinking. Hence, the recent rallies, yet it's important to note that DJED currently has a supply of only $2 million, implying that it has plenty of growth left in store.
Partly because of Djed's arrival, Cardano's TVL has spiked from about $50 million on January 1 of this year to $108 million, as of writing. This suggests that Djed has sparked growing usage of
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