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

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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.

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.

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

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

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

Top crypto platforms | April 2024

This article is sourced from the internet: These Factors Will Propel Cardano (ADA) to a 12% Price Rebound

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