Major proof-of-stake (PoS) blockchain Cardano (ADA) is considered to be at its most undervalued price in recent years. This is evidenced by Santiment’s Market Value to Realized Value (MVRV) indicator.
When a cryptocurrency price is compared to its real value, the MVRV ratio may be used to establish whether or not the asset’s price is reasonable,” explains crypto analyst Jordan Major. The MVRV serves as a roadmap to help detect market tops and bottoms in the cryptocurrency market. Based on historical data, this indicator is considered to be accurate. And so, the lower the MVRV ratio, the greater the likelihood of an increase in the price of the item.
Prominent crypto analyst Ali Martinez also points to this MVRV indicator and believes ADA hasn’t been this undervalued since March 2020. “The MVRV 365D (measures the P/L of addresses that acquired $ADA in the last 365 days) suggests that ADA holders sit at an average loss of -26%,” says Martinez.
ADA has achieved a number of milestones in recent months. Listed on over a hundred exchanges and stored on over two million wallets, ADA has made noteworthy progress. Some analysts believe that ADA’s current performance is short-term and that it has better prospects in the long term.
At the time of publication, ADA is currently trading at $1.04, a -2.2% price decrease in the previous 24 hours and -9.8% across the last seven days. The seventh biggest cryptocurrency by market capitalization currently has a total worth of $33.195 billion, according to CoinGecko data.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.
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Source: Cryptocurrency - investing.com
