ADA might be in an accumulation phase, with MVRV ratios historically rebounding from current levels, presenting opportunities for long-term investors despite bearish signals from a 22-month high NVT ratio.
Cardano’s ADA $0.39 24h volatility: 2.7% Market cap: $14.18 B Vol. 24h: $678.49 M token has seen its value dip significantly this December, hitting a low of $0.85. That marks a 10.37% drop in the last month, leaving investors wondering about the token’s near-term prospects. Despite the decline, some see a silver lining as market metrics suggest the possibility of a rebound for strategic players.
Market Value to Realized Value (MVRV), a key indicator, suggests ADA might be in an accumulation phase. With MVRV ratios hovering between -13% and -26%, analysts note that ADA has historically rebounded from such levels. This pattern could spell opportunities for long-term investors looking to capitalize on undervaluation.
Photo: Santiment
Cardano’s NVT Ratio Hits High
However, not all signs are positive. Cardano’s Network Value to Transactions (NVT) ratio has hit a 22-month high, signaling a potential bearish trend. The imbalance between network valuation and transaction activity indicates weak on-chain demand, a factor that could dampen short-term recovery hopes.
On the technical side, ADA retains a “golden cross” pattern from November. The 50-day moving average ($0.891) remains above the 200-day moving average ($0.611), a historically bullish sign. While the MACD shows some slowdown in momentum, the easing of selling pressure hints at possible upward movement.
Photo: TradingView
One hurdle, however, stands firm: a significant sell wall of 4.3 billion ADA. That barrier will likely need to be addressed before ADA sees substantial recovery. Even so, Cardano’s past resilience suggests it may navigate through the current consolidation phase successfully.
ADA Eyes $1 by January 2025
Looking ahead, experts are keeping an eye on 2025. Cardano’s integration with Bitcoin’s OS Bridge is expected to enhance liquidity options in the DeFi space, potentially boosting adoption. Analysts forecast prices reaching anywhere from $4.17 to $15 if development goals are met.
Closer targets also generate excitement, with some predicting ADA could touch $1 by January 2025 and $2 by February. Sustained Bitcoin BTC $86 305 24h volatility: 2.7% Market cap: $1.72 T Vol. 24h: $46.98 B performance around the $100,000 mark is likely to lift altcoins across the board, offering additional momentum for Cardano.
Cardano’s progress faces challenges, especially from competitors in the smart contract space. However, the platform’s ongoing expansion of tokenized assets and distributed models reinforces its foundation for growth. Key support at $0.80 and resistance at $1.30 will be crucial points to watch as the token charts its course.
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