- Buy orders for ADA outnumbered the waiting sell-offs, indicating that the price can hike
Cardano’s native token could climb to $0.40 based on the historical MVRV ratio data
As a researcher with experience in analyzing cryptocurrency markets, I find the current state of Cardano (ADA) intriguing. Based on the data from the Exchange – Onchain Market Depth and the Market Value to Realized Value (MVRV) ratio, there are signs of potential price appreciation.
Over the past thirty days, the value of Cardano’s [ADA] cryptocurrency has decreased by a significant 20.99%. Yet, according to AMBCrypto’s recent findings, some traders are capitalizing on this price drop and attempting to seize the discount.
As a researcher, I examined the Exchange-Onchain Market Depth metric to obtain the relevant data. This metric represents the orders placed by market participants on various exchanges. It can be broken down into two parts: the bids and the asks. The bids reflect the prices at which buyers are willing to purchase an asset, while the asks signify the prices at which sellers are prepared to sell.
In plain terms, the Onchain Market Depth for Bidding on the Exchange displays the quantity of tokens waiting to be purchased. The figure on the right represents the Ask, indicating the amount of tokens available for sale.
Is it time to offload ADA or not?
As of the current news update, there were indications that buyers intended to purchase a combined total of approximately 166.73 million ADA coins at an average bid price of around $0.37 each. Conversely, sellers were poised to unload roughly 121.95 million Cardano tokens at this same price point.
As a crypto investor, I’ve noticed that when the price of ADA remained constant, the volume of buy and sell orders could influence its value. In this case, given that the buy orders surpassed the sell-offs, there’s a good chance that ADA will maintain its position around $0.37.
Should a price increase occur, Cardano’s value could potentially rise to reach around $0.40 within a short timeframe.
In addition to monitoring activities on cryptocurrency exchanges, it’s crucial to examine other on-chain indicators as well. For instance, AMBCrypto utilized the Market Value to Realized Value (MVRV) ratio for this analysis.
As a crypto investor, I frequently check the MVRV (Moving Average Value) ratio to gauge the profitability of my investments. This valuable metric reveals the average profit or loss for holders, providing essential insights into the current market status. Furthermore, by comparing the MVRV ratio to the fair value, I can determine if a particular cryptocurrency is potentially undervalued or overvalued within the broader market context.
Cardano presents an opportunity
Currently, the MVRV ratio of Cardano after a 30-day period is at 13.33%. In simpler terms, this figure indicates that if every ADA holder were to sell their tokens right now, the overall average loss would be 13.33% compared to their initial purchase price.
Based on historical data, if the MVR Realized Value (MVRV) ratio for ADA falls within the range of -11% to -27%, it could be an indicator that the token’s price may increase in the upcoming days or even weeks.
The anticipated increase in price for ADA doesn’t necessarily rule out the possibility of further decreases. However, any potential downtrend may not be as drastic as the recent one over the past month.
As a crypto investor, I’ve noticed that the daily circulation of tokens decreased following the price hike on June 18th. To clarify, I’m referring to the number of tokens that were involved in transactions during a specific timeframe when I mention circulation.
As an analyst, I would interpret a rise in circulation as an indication of heightened transactional activity surrounding a particular cryptocurrency. In the case of Cardano, though, its circulation figure has decreased to 196.73 million.
As an analyst, I would interpret a decrease in the volume of tokens being traded in transactions as potentially positive for the price. This is due to the reduced selling pressure that comes with fewer tokens being sold.
If circulation keeps decreasing, there’s a higher possibility that the value of ADA may increase. As previously stated, the price of Cardano might reach $0.40.
Is your portfolio green? Check the Cardano Profit Calculator
Yet, if the larger market trend persists as bearish, ADA could potentially drop to $0.35 on the price charts.
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2024-06-22 11:03