- The 30-day MVRV was negative, suggesting a possible accumulation area for ADA.
While large transactions decreased, active addresses rose, indicating a possible rise to $0.76.
As a researcher with experience in crypto analysis, I believe that Cardano (ADA) is showing some promising signs despite the recent bearish trend. The 30-day MVRV ratio being negative at -1.402% suggests that ADA could be undervalued. This, coupled with an increase in active addresses to 28,000, implies a surge in network activity and potential buying interest.
Over the past 90 days, the value of Cardano‘s [ADA] cryptocurrency has dropped by a significant 40.60%. This decline has sparked debates among investors and market analysts, leaving some to question whether Cardano can match its impressive gains from 2021.
As of the current news update, I observe that the price of Cardano (ADA) stood at $0.45 in exchange transactions. A significant observation to make is that Cardano managed to reclaim its 9th position in the cryptocurrency market cap rankings, pushing Toncoin (TON) down from this spot after a brief occupation.
As a researcher studying the current market trends of ADA, I must clarify that the recent development does not automatically imply an exponential surge in the token’s value. Although the market conditions seem bearish at present, some analysts are forecasting a significant price increase for ADA.
ADA nears 2021 breakout point
Among them, Dan Gambardello holds the view that Cardano is more likely than not to surpass its 2021 rally. He expressed this belief on platform X, pointing out that the project boasts increased security, scalability, and decentralization.
He wrote,
As a crypto investor looking back at the previous market cycle, I recall that Cardano had plummeted approximately 90% from its all-time high. Skeptics declared it a dead or “ghost” chain with no future. Surprisingly, Cardano defied expectations and soared an astounding 3,000%, rising from a mere $.10 to a staggering $3.00. Now, at the same stage of this current market cycle, Cardano is down by about 85%. However, I believe in its potential this time around due to its enhanced security, decentralization, and scalability.
The peak price for ADA reached $3.10 in September 2021. At this point, the Market Value to Realized Value (MVRV) ratio stood at 35.94%.
The MVRV (Money-Weighted Average Realized Value) ratio serves as a useful indicator in determining market peaks and troughs. By evaluating the profitability of crypto holders, an exceptionally elevated MVRV ratio implies that the particular cryptocurrency is approaching its peak.
In this situation, the token can be referred to as underappreciated or underestimated. Alternatively, if many holders are uncertain about its worth, the token may be considered undervalued.
Is it time to buy?
At present, the 30-day MVRV ratio for Cardano stands at a level of -1.402%. This signifies that the token might be underpriced based on its realized value against its current market price. However, it’s essential to note that this indicator doesn’t guarantee a return to its previous all-time high of $3 during this market cycle.
As a crypto investor, I can share that if the buying demand picks up significantly, there’s a potential for the token price to reach $0.76 once more. That was the level we witnessed back in March during the brief altcoin surge.
The trading volume of Cardano should reach significant heights for the token to experience notable price gains. A surge in trading volume suggests growing investor attention towards the token. When coupled with an upward trend in price, it can reinforce the bullish momentum.
As a crypto investor, I’ve noticed that the number of large transactions taking place on the Cardano (ADA) network can impact its price significantly. Unfortunately, this data isn’t readily available for individual retail investors like myself to access directly through the blockchain.
Based on IntoTheBlock’s analysis, the amount of ADA tokens involved in significant transactions dropped to approximately 25.52 billion dollars (11.48 billion ADA). This signifies a decrease in institutional and whale activity related to this token.
Decreasing this total amount even more might cause the value of ADA to drop, potentially reaching a price as low as $0.42.
As an analyst, I would put it this way: Should the value of Cardano experience a rebound, it could bring positive consequences for its native token, ADA. For instance, if institutional investors amass over 200 billion ADA without substantial dispersion, the price may surge significantly.
Network activity is picking up
If this occurs, the price of ADA may reach $0.76 as previously stated. In a very optimistic scenario, the value of the token could even surpass the $1 mark.
Based on the metric of active addresses, AMBCrypto reported an uptick. According to Santiment’s data, there were approximately 28,000 active addresses within the last 24 hours.
The rise in the number of distinct wallets involved in successful transactions signifies a significant uptick in participation. However, this figure doesn’t consistently impact prices – particularly when the growth is subtle.
Should network activity surge significantly, ADA may experience notable benefits. It seems plausible that ADA’s value could reach impressive heights prior to the bull market’s conclusion.
Is your portfolio green? Check the Cardano Profit Calculator
It’s possible that reaching a price of $3 for the token could be overly optimistic. On the other hand, certain market observers believe that an altcoin rally may occur prior to the completion of this market cycle.
If that happens, then ADA could attempt to hit the $3 mark.
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2024-06-03 22:16