Cardano Price Holds $0.18 as DeFi TVL Jumps 14M ADA

Cardano (ADA) price is defending the crucial $0.18 support level as activity across its decentralized finance ecosystem strengthens. Cardano DeFi TVL has increased by more than 14 million ADA since August 8, although weak institutional demand could limit the cryptocurrency’s near-term recovery.

According to DeFiLlama data, Cardano’s total value locked climbed from 351.5 million ADA on August 8 to 365.73 million ADA, currently valued at approximately $66.65 million. The network’s stablecoin supply has also expanded, rising from around $63 million on August 1 to $67 million.

However, decentralized exchange activity has not followed the same trend. Cardano DEX volume declined from $1.88 million on August 11 to roughly $867,494, indicating that the higher TVL has yet to translate into stronger trading activity.

The DeFi growth follows Cardano’s Van Rossem upgrade on July 18. The upgrade was designed to improve smart contract speed and reduce costs while preparing the blockchain for the upcoming Leios upgrade.

Meanwhile, institutional interest in ADA appears to be weakening. CME data showed zero Cardano futures trading volume on August 13. Open interest also dropped from 32.7 million ADA to 19.7 million ADA, signaling cooling demand for regulated Cardano derivatives.

Institutional sentiment faced another setback after Grayscale withdrew its Cardano Trust ETF application on August 10. The withdrawal came amid declining institutional enthusiasm for altcoin ETFs outside Ethereum.

From a technical perspective, the Cardano price is testing $0.18, which previously acted as resistance for 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) also suggests that the bearish move from $0.21 on August 6 is losing strength. However, Cardano’s Relative Strength Index (RSI) remains around 50, reflecting neutral momentum. A fall below 50 could weaken the bullish Cardano price outlook, while sustained buying above $0.18 may improve the chances of a renewed recovery.