This Loss Could be a Saving Grace for Cardano (ADA) Traders – Here’s Why

This Loss Could be a Saving Grace for Cardano (ADA) Traders – Here’s Why

October 23, 2022 0 By Alicia Hagen

Cardano (ADA) registered another lowest realized value amidst re-emerging undervalued indications. Santiment revealed that ADA recorded such developments last in Jan 2019. Surprisingly, ADA’s price doubled following the 2019 low.

As the MVRV (Market Value-Realized Value) maintained a Z score of -1.35, Cardano enthusiasts might expect 2019 narratives to emerge again this year. Meanwhile, were other metrics aligning with the undervalued signals?

Possible Ready to Follow

The MVRV Ration appeared to follow upsides as ADA’s Z-score suggested potential price surges in the upcoming months. Santiment indicated that Cardano’s 30-day Market Value-Realized Value Ratio stood at -20% on October 15.

That confirmed that investors stayed from profiting from ADA, leave alone their holdings recording double ROI. While publishing this content, the MVRV ratio maintained an impressive upside to -12.53%. Though that didn’t confirm incoming profits, it could support the potential of mid-term price surges.

Indeed, it might seem crazy to expect 2X price surges from ADA. Also, that remained possible as the altcoin surged toward $0.35 within the past day. Coinmarketcap data shows the price gained 4.14% overnight, translating to a substantial uptick from the October 21 dip that placed the token at $0.33.

Besides the MVRV ratio, Cardano market players can watch ADA’s price trends. Meanwhile, the price might be readying for potential surges. The daily address metric confirmed that tale. Santiment’s data indicated that 24hr active addresses stood at 69,500 during this publication.

Thus, these market participants might be ready since the October 19 increase. Nevertheless, that could mean concluding without checking Cardano’s price action and momentum.

What Next?

Assessing the charts suggested that ADA exhibited impressive momentum. The RSI (Relative Strength Index) read 47.92, signaling more upsides. ADA maintaining the buying pressure might propel prices higher, above $0.35.

Moreover, the Bollinger Bands shows ADA might record price uptrends soon. The BB showed that alt might escape its low volatility phase. That might bolster support at $0.333 – $0.346 and drive prices higher in the near term.

Meanwhile, the MACD shows ADA could require more (besides the buying momentum) to accomplish its price surges goal. Patience remains paramount before guaranteed rallies, as the seller and buyer strength were beneath the histogram.