Cardano (ADA) ready to double profit if history repeats itself: data

Cardano prices have fallen to their lowest level since February 2021, taking a turn for the worse after the long-awaited Vasil upgrade.

The ADA price adjustment gained momentum following the downtrend across digital asset markets, spurred by aggressive rate hikes by the Federal Reserve to curb rising inflation. In fact, his ADA has decreased by more than 20%. hard forkThis was intended to enhance network scalability and smart contract functionality.

Despite falling investor confidence, a change in trend is likely.

Is Cardano Underrated?

According to cryptoanalytics platform Santiment, Cardano is sitting It is at its lowest relative position compared to its realized value since January 2019, a sign of undervaluation based on the average trader’s losses, which could encourage the token’s price to rise.

The data suggest that the ADA MVRV Z-score reached -1.35 for the first time in 45 months. Market Value to Realized Value (MVRV) represents the ratio of the current price to the average price of all acquired assets. Its value basically tells you how much this asset is overvalued or undervalued. An increase in the ratio means that selling pressure is increasing among holders as the potential profit increases.

The last time ADA’s MVRV Z-score was at this level, the token’s price doubled over the next three months.

tame a bear

Pseudonymous cryptocurrency trader DonAlt these days said Cardano could suffer the same fate as former top 10 players EOS, Litecoin and Bitcoin Cash. Prior to the last bull market, these three assets were second only to some of the biggest cryptocurrencies, but their popularity quickly took a hit. Litecoin, for example, briefly slipped out of the top 20 on CoinMarketCap.

At the time of writing, Cardano was trading at $0.35 after surging nearly 5% over the weekend.

On the technical side, network witnessed A significant increase in stakers. Staker numbers have remained fairly consistent, with him up more than 30% over the past 30 days, but depreciation is cause for concern.

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