CryptoSphere by AsCurrency

CryptoSphere: cryptocurrency news, market analysis, blockchain trends and investments. Your essential guide to the digital economy

These Factors Will Propel Cardano (ADA) to a 12% Price Rebound


The current price trajectory of Cardano (ADA) appears bearish. Yet, indicators suggest a potential shift towards recovery could be imminent.

If this shift occurs, ADA is set for a significant rally.

Cardano Poised for Potential Uptrend

Cardano experienced a 15% decline over the past week, now hovering around the $0.57 support level, a threshold that has been tested repeatedly.

While this might hint at a continued downtrend, on-chain metrics paint a more optimistic picture.

The Market Value to Realized Value (MVRV) ratio, a key indicator of investor profitability, places ADA in an optimal position for accumulation. With a 30-day MVRV at -12.5%, indicating current losses, this scenario often leads to increased buying activity.

Historically, ADA sees recovery within the -8% to -18% MVRV range, identified as an “opportunity zone” for investors.

Cardano MVRV Ratio.
Cardano MVRV Ratio. Source: Santiment
Cardano Supply in Profit.
Cardano Supply in Profit. Source: Santiment

ADA Price Prediction: Rebound on Sight

Trading at $0.57, ADA is at a critical juncture, attempting to maintain its position above support. Given the conditions, a rise to $0.63 seems plausible, a level that has served as a significant resistance in the past.

Overcoming this barrier would likely initiate a rally toward $0.70 or higher.

ADA/USDT 1-day chart.
ADA Price Chart. Source: TradingView

However, should ADA dip below the $0.56 support before recovery can take hold, the bullish outlook would be negated, potentially pushing the cryptocurrency down to the next major support at $0.50.

Top crypto platforms | April 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.


Conclusion

In conclusion, while the current price trajectory of Cardano (ADA) appears bearish, there are indicators suggesting a potential shift towards recovery that could lead to a significant rally. The Market Value to Realized Value (MVRV) ratio places ADA in an optimal position for accumulation, with historical data showing that recovery often occurs within specific MVRV ranges. The price prediction for ADA indicates a possible rebound to $0.63 and potentially higher levels if it can overcome the current resistance. However, a dip below the $0.56 support could negate the bullish outlook, pushing ADA down to the next major support at $0.50.

  • bitcoinBitcoin (BTC) $ 66,213.00
  • ethereumEthereum (ETH) $ 3,559.24
  • bnbBNB (BNB) $ 606.66
  • solanaSolana (SOL) $ 145.33
  • xrpXRP (XRP) $ 0.484199
  • cardanoCardano (ADA) $ 0.411807
  • shiba-inuShiba Inu (SHIB) $ 0.000021
  • polkadotPolkadot (DOT) $ 6.22