In the dynamic landscape of cryptocurrencies, Cardano (ADA), once a prominent contender as the world’s 6th largest cryptocurrency, has seen a decline to the 10th position. However, with bullish signals emerging from Santiment, an on-chain analytics firm, coupled with shifting market sentiments ahead of the upcoming Bitcoin halving event, there’s potential for Cardano to regain its standing.
Analysts have pointed to data from Santiment indicating that when Cardano’s MVRV Ratio previously dropped below -22%, ADA’s price surged by over 75%. With the ADA MVRV Ratio currently below this threshold following a consistent price decline over the past 36 days, it may serve as an indicator for a potential price recovery.
The MVRV (Market Value to Realized Value) Ratio is a crucial metric in cryptocurrency analysis, offering insights into the market’s valuation relative to investors’ average profit/loss over time.
In the past month, the Cardano (ADA) cryptocurrency experienced a significant price drop of nearly 40%. This decline has been attributed to factors such as the rise in the United States Consumer Price Index (CPI) data and ongoing geopolitical tensions between Iran and Israel.
As of the latest data, Cardano (ADA) is trading near $0.46, with a 3% downside momentum observed in the last 24 hours. Over a broader timeframe, ADA has seen a decline of over 20% in the past 7 days and over 22% in the past 30 days.
Technical analysis indicates that on a daily timeframe, ADA is consolidating near a crucial support level. However, bearish signals are observed as ADA is trading below the 200 EMA (Exponential Moving Average). Nonetheless, on a weekly timeframe, ADA remains bullish, finding support from both significant support levels and the 200 EMA. There’s anticipation that breaching the $0.49 level could trigger a significant upside momentum of over 15%.
In addition to Cardano’s (ADA) individual prospects, the broader cryptocurrency market is currently experiencing bullish momentum, with leading cryptocurrencies like Bitcoin and Ethereum witnessing notable upside movements of over 4% and 2%, respectively.
