Cardano (ADA) price followed broad market signals and fell more than 25% on the daily chart over the weekend.
As ADA prepares for a potential recovery, investors see a bullish signal that could pave the way for a cryptocurrency rebound.
Cardano investors can take back control
Cardano’s price has historically been responsive to the actions of ADA holders, which could be key to its recovery. Whale investors trading on the network are increasing their holdings.
Addresses holding between 1 and 10 million ADA have purchased over 30 million ADA worth $14.6 million over the past three days. This is despite recent corrections suggesting that whales are expecting prices to rise and are building up accordingly.
Additionally, the asset is in the highest accumulation zone when looking at its Market Value to Realized Value (MVRV) ratio.
Read more: How to Buy Cardano (ADA) and Everything You Need to Know
The MVRV ratio measures profit or loss for an investor. Cardano’s current 30-day MVRV of -19% suggests recent buyer losses, which are likely to lead to accumulation. Historically, ADA recovery occurs between -13% and -21%, identifying this as an opportunity area for accumulation.
Therefore, the price of Cardano may benefit from investor actions.
ADA Price Prediction: Recover Your Losses
Cardano’s price trading at $0.48 is already showing signs of recovery. Considering the factors mentioned above, ADA could continue this recovery and reclaim support at $0.56, 16% above the current price. This represents a 25% rise for the third-generation cryptocurrency.
On the other hand, if ADA fails to break the resistance marked at $0.50, the bullish argument could be invalidated. This line has been tested multiple times for both support and resistance and is now firmly established as an important barrier.
Read More: Cardano (ADA) Price Prediction for 2024/2025/2030
Failure to do so would result in a loss of $0.44, which could lead to a drop to $0.40.
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