Cardano has reached a point where ADA prices historically rise by 30-day MVRV divergence
As the channel and market data provided by Saniment suggest, Cardano and other altcoins have entered a historic “buying opportunity” zone, according to MVRV Divergence. During heightened volatility in the crypto market, when retail traders mostly follow general market trends, some assets become extremely overbought, while others remain oversold.
📉 #CardanoAverage trade returns over the 30-day mid-term interval fell below -15%. This is historically an MVRV level when $ADA and many others #altcoins see at least a short price rally to mitigate the losses piling up on the networks. https://t.co/cIAE2JuWRV pic.twitter.com/Ti98uQ3Rfr
— Santiment (@santimentfeed) April 22, 2022
According to the chart provided, Cardano has reached a point where ADA prices are historically rising according to the 30-day MVRV divergence. Santiment reports that Cardano’s average trading returns in the mid-term 30-day interval have fallen below -15%, suggesting oversold conditions. He notes that this is historically an MVRV level where ADA and many other altcoins see at least a short price reversal to mitigate losses piling up on the networks.
MVRV, or Market Value to Realized Value, is a ratio that allows cryptocurrency investors to tell whether an asset’s price is fair or not. As a standalone metric, MVRV is used to determine market highs and lows.
Cardano Remains Undervalued Despite Recent Achievements
The Cardano (ADA) network has passed several milestones in recent months. The number of ADA wallets increased by 100,000 in one month, with the total figure standing at 3.2 million as of April 19.
Activity on the Cardano blockchain is skyrocketing, with 400 new projects underway. Currently, almost 900 projects are being built on Cardano.
Despite the progress made with the growth of the network, ADA remains undervalued. According to CoinMarketCap data, ADA was trading at $0.899 at press time, down 1.58% in the past 24 hours and down almost 7% in the past week. Cardano’s price has steadily declined after hitting an all-time high of $3.16 in September 2021 amid the Alonzo hard fork announcement. At its current price, ADA remains down 70.99% from its all-time highs.
As covered by U.Today, crowd sentiment towards ADA is currently at the most positive levels since mid-November, as traders await a positive price breakout.