- ADA’s price decline sparked curiosity about its recovery potential as key on-chain metrics flashed mixed trends
- Insights into ADA’s MVRV and inflation rate shed light on its current market positioning and future trajectory
The broader crypto market has faced significant setbacks over the past week, with Cardano (ADA) sharing in the decline. In fact, data showed that ADA fell by over 13% in the last seven days, making it one of the biggest losers among the top ten. Amid heightened market volatility, investors are assessing ADA’s price trends, the state of its on-chain metrics like the 30-day MVRV, and its annual inflation rate.
Cardano price action – A reflection of market sentiment
The altcoin’s price chart revealed a downtrend, with Cardano trading at approximately $0.9213 at the time of writing. Lately, the asset has struggled to maintain its recent upward trajectory, forming lower highs (LH), as visible on the price chart.
The Accumulation/Distribution (A/D) line indicated subdued buyer interest, correlating with reduced trading volumes. Furthermore, the Choppiness Index (CHOP) suggested that ADA’s price action remains range-bound and lacks definitive momentum, a typical characteristic of markets in consolidation phases.
Key levels to monitor include $0.90 as immediate support and $1.00 as resistance. Failing to hold above the support zone may lead to further downside pressure.
MVRV Ratio signals possible undervaluation
The 30-day MVRV (Market Value to Realized Value) ratio, which reflects the profitability of short-term holders, was negative at -6.90% at press time.
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Author: Adewale Olarinde
