Cardano’s ADA Enters “Historical Buying” Zone – Santiment

Cardano remains undervalued despite shedding 6% in a week as the crypto enters a "historical buying" zone, according to data from crypto analysis firm Sentimant.

Cardano - ADA

At the risk of sounding like a broken record, cryptocurrency is once again making headlines. This time, it’s thanks to Cardano (ADA) and other altcoins entering a historical “buying opportunity” zone, according to MVRV Divergence.

For those unfamiliar with the term, MVRV is a ratio that measures the difference between the market value of a cryptocurrency and its realized value. In short, it lets a trader know whether a cryptocurrency is currently overbought or oversold.

According to a chart provided by crypto analytics platform Santiment, Cardano’s average trading returns on “the 30-day mid-term interval have fallen below -15%,” suggesting oversold conditions. This technical concept in crypto refers to when the prices of assets in the crypto market have been falling for a prolonged period of time and reach a point where they are considered to be undervalued.

This usually happens when there is a lack of buying interest and selling pressure starts to increase. When this happens, it can provide an opportunity for buyers to enter the market and push prices back up. And right now, based on Santiment’s chart and comment, it appears that this is “historically an MVRV level where ADA and many other altcoins” are in a position “to see at least a short turnaround in price to alleviate the losses mounting on networks.”

Cardano remains fundamentally undervalued

Cardano is one of the most popular cryptocurrency networks in the crypto space, and it has been reaching several milestones in recent months.

Since early last year, the number of new addresses created within the Cardano blockchain has been growing at an unprecedented rate. In the past month alone, the number of ADA wallets increased by nearly 100,000, with the total figure standing at 3.16 million as of April 17. This coincides with the recent growth of Cardano’s DeFi (decentralize finance) ecosystem.

Some of the other milestones achieved by the proof-of-stake consensus algorithm network, which is also one of the first to be built on Haskell code, include that of being one the few blockchains to experience solid growth in areas such as sidechains, NFTs & partnerships, launchpads & project launches Defi/GameFi, and converter bridges. In fact, the blockchain currently has nearly 900 projects under development.

Additionally, Cardano is expecting the upcoming Vasil Hard Fork to significantly improve the performance of the platform given it will enhance the range of decentralized exchanges (DEXs), DeFi, as well as smart contracts.

Despite the networks’ growth progress however, the $30 billion market cap token, whose market dominance is stuck at 1.6%, remains undervalued.

According to CoinMarketCap data, ADA has lost more than 68% of its value year-over-year and nearly 6% over that past week.

At last check, the altcoin was changing hands at $0.90, down 0.79% in the last 24 hours.

Disclaimer: This article is provided for informational purposes only. It is not intended to be used as investment or financial advice

Jasper - The Real Deal!

About Ron Haruni 1061 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.