- The low NVT ratio suggested the token had hit its midterm bottom
Technical analysis predicted a surge to $0.82 for ADA.
According to the adjusted 90-day NVT ratio signaling, Cardano (ADA) might be close to sealing bears’ fate in a metaphorical coffin. For those who are not aware, NVT represents the Network Value divided by the Total Number of Transactions.
With a substantial Network Value to Transaction Ratio (NVT), a cryptocurrency boasts an impressive network worth yet exhibits modest transactional activity. During pessimistic periods when investor attitudes lean bearish, market values could potentially decrease.
Instead of “However, Cardano’s NVT, as indicated by Messari, was -1.23,” you could say:
ADA prefers a cup with a handle
ADA’s decrease in price might have signaled a buying opportunity for some investors, potentially leading to an increase in value for the token according to ADA. On the other hand, AMBCrypto found it normal for the trading volume to exceed the market capitalization.
More recently, we shared news that ADA was on the verge of exiting the top 10 cryptocurrencies due to others overtaking it. Yet, this could have changed now.
At present, the cost of ADA is $0.48. This figure represents a 2.01% rise over the past 24 hours. The uptick can be attributed to the rebound experienced by altcoins following Bitcoin‘s [BTC] halving event.
Upon inspecting the technical details, we discovered that the NVT signal indicated authenticity. On the 4-hour ADA/USD price chart, there was a cup and handle formation from April 15 to April 20.
In this context, the price of Cardano’s bulls kept climbing up from $0.44, overcoming the obstacle at $0.47. The cup and handle pattern may cause ADA to pause momentarily before continuing its upward trend.
The RSI’s confirmation supported the possibility of a consolidation. At present, the RSI was moving in the opposite direction of its earlier upward trend, signaling that the token’s bullish energy was weakening.
The Fibonacci extension of 4.236 could potentially lift the price up to $0.82 in the coming term. Initially, the price may reach $0.76 (representing the 3.618 level) before overcoming the psychological barrier at $0.80 and advancing further.
Is $1 possible this time?
Over the past 12 months, Cardano hasn’t managed to hit the anticipated mark. Reaching this milestone might pave the way for a price surge beyond what was observed during the 2021 bull market.
Currently, there are approximately 4.47 million ADA holders as reported. A significant surge in this number occurred on April 8th, with around 100,000 new wallets acquiring the token.
Read Cardano’s [ADA] Price Prediction 2024-2025
If the number of holders remains constant in the upcoming days, ADA‘s price may fluctuate around the current level. During this timeframe, the coin’s value could range from $0.46 to $0.51.
If the need for ADA rises in the coming months as expected, its value could potentially match the US dollar. Yet, Cardano may not see significant action just yet.
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2024-04-21 10:15