Cardano has a long-term bullish outlook based on the MVRV metric, but traders need to beware of short-term profit-taking activity as well...
Daily active addresses have held up well, despite the price’s downtrend since Aprilmeans ADA traders must also keep an eye on the king coin. The correlation with Ethereum is positive but weaker, which is slightly good news because ETH’s performance has been poor lately.Cardano’s price action has also been uninspired recently, with a range formation from $0.311-$0.393 being in play since early August. The mid-range level at $0.
The OBV has trended higher slowly over the past month and seemed to be on the verge of setting a new high. The daily RSI also signaled a bullish momentum shift. Hence, ADA traders can anticipate a rally towards $0.39-$0.4 on the charts.A look at the in/out of the money stats around the price revealed that $0.326-$0.338 and $0.35-$0.358 are key short-term support zones. Meanwhile, the $0.379-$0.391 level is a stern supply zone. These findings line up pretty well with the price action chart.
This metric has fallen below the low it set in October 2023. This means that a potential market bottom may now be underway for Cardano. At the same time, the daily active addresses metric has been relatively stable since April, despite the price downtrend. To put it simply, network participation may be poised for gains should the market sentiment and price trends turn bullish. Additionally, the falling Open Interest showed that speculators have not been convinced of a strong rally yet.While Cardano might be near a long-term market bottom, in the short term, the token can be interpreted to be slightly overvalued. At press time, the 30-day MVRV was positive and showed that there is a chance of selling pressure from profit-taking activity.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cardano fights ‘dead coin’ label: How AI can help ADA soarCardano (ADA) continues to hold its ground among the top digital assets despite criticisms of being a dead coin.
Read more »
Cardano price prediction – ADA’s re-visit of THIS level will be followed by…Cardano seemed to be hovering at $0.33, a critical level. Will bulls gain momentum amid low profitability and potential volatility?
Read more »
Cardano: Why $0.36 and $0.42 are crucial levels to watch forCardano prices were consolidating after the high volatility earlier in August. A price bounce toward $0.42-$0.44 could be on the cards.
Read more »
Cardano nears critical $0.3172 support: Will ADA bulls step in?Cardano price dips, but rising whale activity and active addresses signal potential recovery. Explore key support and technical trends.
Read more »
Cardano’s network activity soars post-upgrade: Will prices follow?Cardano recently saw a surge in daily active addresses, reaching over 52,000 on 5th September, the highest in five months.
Read more »
How Bitcoin’s drop influences altcoins like CardanoAmid Bitcoin's slight rebound, a CryptoQuant analyst has shared in a report the correlation of some altcoins with Bitcoin’s performance.
Read more »