The recent surge in Bitcoin's value has overshadowed the struggles faced by altcoins like Cardano (ADA). Despite the downward trend in ADA's price, market analysis suggests a possible turnaround and an upcoming rally.

Signs of a Rebound

Cardano has experienced a 15% decrease in value, approaching the $0.57 support level, a point frequently tested for resistance, indicating a potential shift in direction. On-chain metrics, such as the Market Value to Realized Value (MVRV) ratio, suggest that ADA is poised for accumulation. A negative 30-day MVRV ratio of -12.5% signifies investor losses, a pattern typically followed by heightened buying activity. Historical data indicates that ADA tends to see a price increase when the MVRV ratio falls between -8% and -18%.

Additionally, when less than 65% of ADA's total supply is profitable, a price rebound is often observed. Currently, around 60% of ADA's supply is profitable, aligning with past recovery trends.

Technical Analysis on ADA's Performance

Trading at $0.57, ADA is at a critical point near its support level. Predictions suggest a potential rise to $0.63, a previous strong resistance point. Breaking through this barrier could propel ADA towards $0.70 or higher. Conversely, a drop below $0.56 may negate the favorable forecast, risking a decline to the next significant support level at $0.50.

Considerations

• The 30-day MVRV ratio indicates a possible recovery phase for ADA based on historical patterns.
• A decrease in the profitable supply to below 65% has historically preceded price rebounds.
• Technical analysis highlights that ADA is at a pivotal support position, subject to either a breakthrough or further decline depending on investors' reactions.

Investors and observers should closely monitor these indicators as they could signal significant price movements for ADA in the short term. As with any investment, staying attentive to market signals is essential to navigating the volatile crypto landscape.

Original Source

The original article was published on BH NEWS: Cardano’s Price Analysis Hints at Upcoming Rebound