Cardano (ADA) appeared highly promising in the final months of 2023 and up until late March 2023 as it appeared set to rise toward new highs in a series of stages, each recording higher highs and higher lows in sequence.
More recent trading; however, ostensibly dampened the hopes as ADA entered a significant decline in the crypto market and is dangerously close to retracing back to its late November prices below $0.40.
One cryptocurrency expert, however, believes the time may be right to buy the cryptocurrency as a crucial ratio for ADA – the Market Value to Realized Value (MVRV) Ratio – has hit a critical low.
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This ratio is calculated by dividing the market value – essentially a reflection of the cryptocurrency’s market cap – by the realized value – the sum of the value of each token at the price it was last transacted.
Why Cardano might soon surge to $0.80
According to an X post by Ali Martinez, made on April 19, Cardano MVRV dropped below 22% for the first time since June 2023. The last time this happened, ADA skyrocketed 75% within approximately a month.
Such a rise for the token at the present time would see it skyrocket to just under $0.80 – a high not seen since early 2022 and might send Cardano on its way toward its old all-time highs above $2.
Such a forecast is strengthened by the fact that ADA is currently substantially oversold, and by the fact that the token is close to breaking its third resistance level at $0.489874, having already, in the last 24 hours of trading, rocketed above the first, which stood at $0.466449.
ADA price chart
Cardano has been on an interesting journey in 2024. After a strong start, ADA was severely affected by the crypto market wipe that immediately followed the approval of nine spot Bitcoin (BTC) exchange-traded funds (ETFs), only to rise again – and show much promise – in a massive March rally.
Despite these developments – and despite a substantial strengthening of its ecosystem with accelerating growth in the number of smart contracts – Cardano is, by April 19, 21.09% in the red year-to-date (YTD).
Much of the fall can be attributed to the last 30 days, which saw a drop of 23.26%, and the weekly chart is not much better, with a decrease of 19.83%.
Cardano price today stands at $0.46808 after a strong 24 hours, which saw a significant 3.56% climb by press time.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
