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These Factors Will Propel Cardano (ADA) to a 12% Price Rebound

1 min
Updated by Ali Martinez
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In Brief

  • Cardano tests the critical support level of $0.57 after noting a 14.5% correction.
  • The MVRV ratio is back in the opportunity zone only for the fourth time this year.
  • The total profitable ADA supply has dipped below 65%, signaling a recovery soon.
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The current price trajectory of Cardano (ADA) appears bearish. Yet, indicators suggest a potential shift towards recovery could be imminent.

If this shift occurs, ADA is set for a significant rally.

Cardano Poised for Potential Uptrend

Cardano experienced a 15% decline over the past week, now hovering around the $0.57 support level, a threshold that has been tested repeatedly.

While this might hint at a continued downtrend, on-chain metrics paint a more optimistic picture.

The Market Value to Realized Value (MVRV) ratio, a key indicator of investor profitability, places ADA in an optimal position for accumulation. With a 30-day MVRV at -12.5%, indicating current losses, this scenario often leads to increased buying activity.

Historically, ADA sees recovery within the -8% to -18% MVRV range, identified as an “opportunity zone” for investors.

Cardano MVRV Ratio.
Cardano MVRV Ratio. Source: Santiment

Furthermore, ADA’s price tends to rebound when the total profitable supply drops below 65%. Currently, only about 60% of ADA’s total supply is profitable, aligning with past patterns of recovery spanning over three years.

Cardano Supply in Profit.
Cardano Supply in Profit. Source: Santiment

ADA Price Prediction: Rebound on Sight

Trading at $0.57, ADA is at a critical juncture, attempting to maintain its position above support. Given the conditions, a rise to $0.63 seems plausible, a level that has served as a significant resistance in the past.

Overcoming this barrier would likely initiate a rally toward $0.70 or higher.

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

ADA/USDT 1-day chart.
ADA Price Chart. Source: TradingView

However, should ADA dip below the $0.56 support before recovery can take hold, the bullish outlook would be negated, potentially pushing the cryptocurrency down to the next major support at $0.50.

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Disclaimer

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.

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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...
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