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Cardano is forming its 7th straight monthly red candle

Cardano is forming its 7th straight monthly red candle

For the seventh month in a row, a red candle is taking shape for Cardano (ADA), currently trading well below $1 and marking a continuation of the long bearish period for the largest Proof-of-Stake (PoS) asset.

A red candle for a token means that its closing price was below both the price at which it opened and previously closed. In the case of ADA, this happened for six consecutive months and looks to be on track to occur for a seventh.

The monthly red candle streak has been following Cardano since September 2021, with the last green candle glowing in August 2021, as per CoinMarketCap data.

Cardano 7 month red candle. Source: CoinMarketCap

The price of the ADA token has been following a steady downward trend since August 2021 regardless of the recent upgrades to the Cardano network and the Ouroboros protocol, including the update of its Daedalus wallet to the 4.9.0 version.

ADA price goes down, but TVL goes up

Since February 20, the price of the token has been below the $1 mark and has recorded a 4.92% decrease over the previous seven days. At press time, the price of ADA is $0.8797 – a 24-hour drop of 3.82%.

This is also a dramatic decline in comparison to August 31 (when the last green candle went out), when the price of one ADA was $2.77. To be more precise, it has decreased by a staggering 68.27%.

That said, the blockchain’s total value locked (TVL) has been making strides and continues to advance. At press time, it stands at $139.79 million, outdoing its previous all-time high of March 2, when it stood at $133.39 million.

The TVL record of March 2 itself had beaten the previous all-time high of $130 million from February 17, according to data by DefiLlama. 

Not to mention that since Cardano underwent a major network upgrade in September including the smart contract functionality, increasing the ADA’s scalability and speed it has seen over 1000 smart contracts added as well as over 3 million ADA wallets

Thus, with all its upgrades traders are watching ADA closely to see whether it can avoid a seventh consecutive red candle or if there is a good entry point to buy Cardano.

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