Cardano's price settled at $1.20 on Wednesday, rising 109% since Gensler signaled he would leave the SEC on November 14, outpacing Solana and Ethereum. Cardano’s TVL increased by $373 million, indicating a 120% increase in demand for DeFi projects built on blockchain compared to 2018. Last 20 days. Technical indicators indicate that the bulls have built solid support in the $1.20 area, suggesting further upside potential.
Cardano price remained solid above $1.20 on Wednesday. The recently observed on-chain inflows amid Gensler’s impending exit suggest that the rally could move further towards $1.50 in the coming days.
Cardano has outperformed Solana and Ethereum since Gensler confirmed his departure from the SEC
Cardano has closed higher in 17 of the past 20 trading days, outperforming the likes of Solana and Ethereum, smashing various major milestones in the process.
First, ADA ended November 2024 with gains of over 230%, making it its best performing month since August 2021.
Furthermore, when the price of ADA reached $1 on November 23rd, Cardano's market capitalization exceeded the $40 billion mark for the first time in three years.
Cardano Price Action | ADUSDT (Binance)
According to recent market reports, Cardano's continued price increase coincides with the expected retirement of U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler.
On November 14, when Gensler first hinted that he would step down, Cardano's price was trading as low as $0.57.
Since then, ADA has risen 110%, reaching a level of $1.20 as of writing on Wednesday, outperforming Solana and Ethereum.
Cardano TVL approaches $700 million milestone after 20-day surge of 120%
At first glance, Cardano's recent 110% price increase is consistent with increased short-term demand for assets deemed undervalued due to recent SEC lawsuits.
However, a closer look at key on-chain data trends shows that ADA price growth is being supported by organic demand for projects hosted on the Cardano blockchain.
In support of this story, the DeFilama chart below tracks real-time changes in the total value of assets locked within the Cardano DeFi ecosystem.
This provides clear insight into changes in network demand and user activity regarding key market events.
Cardano Total Value Lock (TVL) |Source: DeFirama
The graph above shows that Cardano TVL is worth $313 million as of November 13th.
That figure has since soared 120%, reaching the $685 million region on Wednesday, reflecting a 120% increase since newsreels aired Mr. Gensler's bid to leave.
As more users deploy assets and perform DeFi transactions on the Cardano blockchain, demand for ADA in the form of transaction fees and gas will increase.
This represents a long-term bullish outlook for Cardano's price movement, driven by two important factors.
First, TVL's 120% growth over the past 20 days has outpaced ADA's 110% price increase.
This rare market move suggests that the ongoing bull market is being driven primarily by organic network demand rather than short-term speculative frenzy.
Second, the surge in TVL highlights the growing confidence in Cardano’s DeFi ecosystem, especially in the wake of US regulatory headwinds with SEC Chairman Gary Gensler’s decision to step down.
Cardano Price Prediction: $1.50 breakout expected if $1.20 support holds
With TVL growth currently outpacing price, Cardano price still has significant upside potential and could develop further towards the $1.50 level in the short term.
Cardano price prediction | ADAUSDT
Technical indicators on the ADAUSD daily chart also support this bullish ADA price prediction story.
Expanding Bollinger Bands indicates increasing buying momentum. If $1.20 holds, ADA bulls could aim for a quick move towards the upper Bollinger Band at $1.30, paving the way for a potential rally to the psychological resistance at $1.50. .
More to the point, the average directional index (ADX) rising above 60 indicates that ADA is still trending in bullish territory.
However, on the downside, failure to sustain $1.20 could bring focus back to $0.95 as the next major support.
