Cardano total value locked nears $200 million as ADA price prepares for bullish reversal

Cardano continues to be one of the leading actively developed networks across blockchains. The network remains in third place in terms of the number of contributions. The Cardano ecosystem has witnessed massive growth in its total value locked in decentralized finance (DeFi), nearing $200 million.

Cardano network witnesses massive growth

Cardano has witnessed significant growth in the past few months as transaction volume rose in tandem. Recent data from DeFi Llama revealed that Cardano’s total value locked (TVL) nearly reached $200 million.

The Cardano network has launched the Alonzo hard fork upgrade in September 2021, which welcomed the smart contracts functionality. 

Cardano has seen a spike in projects building on the network, with a total of 492 projects building on the blockchain, compared to 175 projects in late December.

The rise in TVL could indicate that many new DeFi projects may continue to arrive on the network.

Currently, there are around 120 active daily contributors working on the development of the network, as Cardano remains the top three most actively developed networks among prominent blockchains.

Cardano price awaits major bounce

Cardano price may have formed a local bottom, according to the Momentum Reversal Indicator (MRI) on the 12-hour chart. 

Cardano has also formed a falling wedge pattern, suggesting that ADA may be awaiting a bullish reversal. The first area of resistance may emerge at the 23.6% Fibonacci retracement level at $1.08, where the 50 twelve-hour Simple Moving Average (SMA) is also located.

ADA/USDT 12-hour chart

The upper boundary will act as the next obstacle for ADA at $1.12. If Cardano price manages to slice above this level, a 34% climb toward $1.48 will be put on the radar.

However, if selling pressure rises, Cardano price may revisit the key line of defense at the lower boundary of the governing technical pattern at $0.91.