Cardano (ADA)’s bullish momentum could continue after an impressive 65% increase over the past week. This prediction is based on historical performance and expected behavior of investors.
Currently, ADA is trading at $0.72 — its highest level since March. This opens up the possibility of further gains. Blockchain analysis shows why this could happen, although some analysts predict significant corrections.
History Suggests That Cardano’s Breakout May Just Beginning
A key indicator that suggests this outlook is the Market Value to Realized Value (MVRV) ratio. MVRV is a measure that compares the market value of a crypto asset to its realized value. This ratio identifies potential market tops and bottoms and provides insights into investor behavior.
Typically, the higher the MVRV ratio, the greater the profits for investors and their ability to sell. However, when rates fall, it means unrealized gains have decreased, and investors may not want to liquidate their assets.
For ADA, the 30-day MVRV ratio is -7.27%. This indicates that if all Cardano investors sell, the average return could be negative. In the past, when the ratio was at this level, the ADA price was likely to continue to increase.
As seen below, an MVRV ratio of 55.56% was needed for an ADA correction in March. Therefore, if history repeats, Cardano’s price could move higher than $0.72 in the short term.
Furthermore, Robinhood’s reintroduction of the cryptocurrency to its trading list suggests that demand for ADA could skyrocket — especially from the US. If that happens, the prediction of a higher value could come true.
Additionally, the HIOM (Historical In/Out of the Money) index, which evaluates the differences between profitable addresses to measure market momentum, also supports this outlook. The decline in this index indicates that more and more investors are no longer in a profitable position, often discouraging new investments.
However, in the case of Cardano, the proportion of profitable addresses has increased, which may encourage investors who are on the sidelines to buy ADA in the short term. If this buying pressure materializes, it could push cryptocurrency values even higher.
ADA Price Prediction: 500% Increase Within Reach?
On the weekly chart, Cardano’s momentum appears to be mirroring the trend from 2020–2021, when ADA skyrocketed 3,653%. The previous breakout was triggered by a positive crossover of the 20-week Moving Average (EMA) above the 50-week EMA.
During that period, ADA climbed from $0.061 to $2.29. Currently, EMA 20 (blue) has just crossed EMA 50 (yellow), marking a new increase for the Token. While a similar rally may not be on the horizon, ADA could still see significant gains of up to 500% in the coming months if past performance influences future trends.
If that happens, ADA could rise to $2.03. This could be accelerated by the rise in the price of Bitcoin (BTC), especially as Cardano appears to have a strong correlation with it. However, if selling pressure increases, this may not happen. Instead, ADA could drop to $0.33.