The crypto market is plunging with the global crypto market cap dropping close to $1 trillion and on the threshold of a massive pullback. The descending trend has accelerated which paves way for the bears to intensify their actions soon. Meanwhile, the Cardano (ADA) price has just begun to head towards the lower targets that may find themselves in deep waters soon.
Cardano raised to gain the levels it lost during the FTX fiasco, marking its presence over the first target at $0.37. However, the rally failed to reach the pivotal resistance zone beyond $0.41 which led the bulls to give up for a while. Presently, the bears appear to have conquered the rally but a notable flip may mark soon.
Cardano – On:Chain Analysis
The year 2022 was quite brutal on the entire crypto space that remained under the acute bearish influence. However, the cryptos managed to rebound and gain more than 20% to 30% of their value since the beginning of 2023. As per the data from Santiment, multiple metrics are on the rise which may impact the price ahead.
- MVRV Ratio Flashing Bullish Signals
MVRV is a ratio that compares the market value of a token to its desired value to determine the fair value. Presently, the fair value of the token is above the MVRV ratio of the past 30 days and of the past 365 days. Hence, it can be determined that traders are constantly accumulating as the price is undervalued, flashing the possibility of a bullish breakout soon.
- Whale Accumulation Soared High
In times when the ADA price has been stuck within narrow regions, whale activity appears to have intensified. The addresses holding ADA between 10K to 10M ADA tokens have been accumulating more tokens ever since the FTX collapse which has reached its peak at the moment.
- Spike in the Mean Dollar Invested Age
The MEan Dollar Invested Age is nothing but the average of all coins/tokens on the blockchain weighted by the purchase price. The levels have been on the rise since August 2022 indicating that the dormant accounts resume accumulating ADA tokens.
- Rise in Daily Active Address
The Daily active address refers to the number of addresses, interacting with the Cardano chain (in the case of ADA) regardless of the nature of the trade. Each address is considered only once per day, irrespective of whether they are performing a buy trade, sell trade, or swapping the tokens. The active addresses indicate the rising traction of the platform which is witnessed at the moment.
Collectively, Cardano is among the projects with robust fundamentals and hence one can expect a notable upswing in the coming days.
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