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Cardano (ADA) Price Struggles to Bounce Back From Seven-Month Low  

2 mins
Updated by Ryan Boltman
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In Brief

  • After testing it during a recent crash, Cardano’s price has hovered around the key support level.
  • The on-chain behavior of these investors shows that selling on their end has come down considerably.
  • The MVRV ratio is also in the opportunity zone, suggesting accumulation is the next step.
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Cardano’s (ADA) price could struggle to bounce back from a seven-month low after the altcoin fell, following broader market cues.

The investors are all for a recovery, and this could be the one factor that changes the direction of the altcoin.

Cardano Investors Aim for Recovery

Cardano’s price could benefit from the optimism that ADA holders are projecting. Their participation is strong despite the low prices, and their HODLing is impressive. Upon distributing the active addresses by profitability, it can be seen that the investors in profit make up less than 2% of all participating users.

Generally, these investors in higher numbers are a threat to the asset as they tend to lean towards selling. Thus, ADA investors’ resilience of HODLing could benefit Cardano’s price going forward.

Cardano Active Addresses by Profitability
Cardano Active Addresses by Profitability. Source: IntoTheBlock

In addition to HODLing, ADA holders could also switch to accumulation since the altcoin is ripe for picking according to the Market Value to Realized Value (MVRV) ratio. The MVRV ratio assesses investor profit and loss.

Currently, Cardano’s 30-day MVRV stands at -11%, indicating losses, which may lead to buying pressure. 

Historically, ADA MVRV between -8% and -19% usually signals the start of rallies, marking an opportunity zone for accumulation. Cardano’s price could recover if ADA investors add more tokens to their holding.

Read More: How To Buy Cardano (ADA) and Everything You Need To Know

Cardano MVRV Ratio.
Cardano MVRV Ratio. Source: Santiment

ADA Price Prediction: Recovery on the Cards

Cardano’s price at $0.38 could soon reclaim $0.40 as a support level, provided investors stick to their optimism. The aforementioned cues suggest a bullish path for ADA is likely, enabling a rise to $0.42.

However, for the same to happen, consistent bullishness is necessary. 

Read More: Cardano (ADA) Price Prediction 2024/2025/2030

Cardano Price Analysis.
Cardano Price Analysis. Source: TradingView

If ADA investors move to offset their losses by booking profits earlier than expected or before Cardano’s price breaches $0.42, it could halt the recovery. As a result, the bullish thesis would be invalidated, creating the possibility of a decline to $0.36 or lower.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...