Cardano price is above $0.42, but cannot gain a foothold above $0.500. However, this important level could trigger a bullish ADA rally. It is expected that if the price of ADA manages to break the important psychological barrier of $0.500, this could lead to a significant recovery in Cardano.
It’s a Good Time to Accumulate Cardano
The on-chain metric MVRV evaluates the ratio of the market and realized value of an asset. It gives an idea of the investor’s profit or loss. Moreover, Cardano’s 30-day MVRV is at -10.24%, signaling losses and potentially encouraging accumulation. Historically, ADA recovery occurs in the MVRV range of -7% to -17%, which is considered an area of opportunity for accumulation.
Other market indicators also support the bullish scenario. For example, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator are currently positive. Meanwhile, the RSI is currently above the 50.0 neutral line, in bullish territory, while the MACD is showing a bullish crossover. Combined with the asset’s potential accumulation, this promises a price rally.
ADA forecast: recovery above $0,500
Cardano’s price, after bouncing off the $0.428 support, is just below the $0.468 resistance at the time of writing.
To consolidate the rally, the $0.518 barrier must turn into support. In addition, this will help the price break out of the three-week consolidation and continue to rise to $0.600, which would represent a 25% rally. On the other hand, if the breakout fails, the price will likely continue to consolidate. If the support at $0.420 is lost, the bullish scenario will be untenable. On the other hand, this could cause ADA to fall to $0,400.
About Cardano (ADA)
Cardano is one of the most popular cryptocurrencies and ranks fifth in terms of market capitalization. However, the project is a decentralized public blockchain, the main goal of which is to protect user privacy, as well as easy modernization so that the system can quickly develop. Moreover, Cardano is a multi-layer protocol; the settlement layer is responsible for computational functions, and the control layer runs smart contracts and enforces network requirements.
Like Ethereum, Cardano is being developed as a platform on which smart contracts and decentralized applications can be run. The project was launched in 2015 and opened to the public in 2017. It is based on the Ouroboros Proof-of-Stake algorithm. The Cardano platform runs a decentralized, open-source cryptocurrency (ADA) that can be used to send and receive digital funds.
