Cardano (ADA) has experienced a steady price decline since early December, hitting a monthly low of $0.86. This price slippage has ADA investors worried about a difficult start to the new year.
However, market signals suggest there may be buying opportunities for those willing to invest for the long term.
Cardano Investors Can Take a Chance
Cardano’s MVRV (Market Value to Realized Value) ratio indicates a possible buy. The index is currently between -13% and -26%, an area that has historically been considered a consolidation zone for ADA. When the MVRV ratio reaches this level, altcoins typically recover, offering significant recovery potential to investors.
Accumulating Cardano at these prices could be profitable, especially as the altcoin has shown resilience in similar situations before. Although sentiment remains cautious at present, the MVRV zone shows that ADA is undervalued, making it attractive to strategic investors.
Even so, Cardano’s macro momentum faces challenges. The NVT (Network Value to Transactions) Index is currently at a 22-month high, signaling a bearish trend. A high NVT index indicates that the network’s valuation is significantly in excess of its trading activity, reflecting weak on-chain demand and waning investor interest.
This discrepancy shows that while Cardano’s market value remains high, its actual usage and adoption are lagging. Investors should consider this imbalance when evaluating an altcoin’s short-term recovery or long-term growth.
ADA Price Prediction: Finding Support
Cardano’s price is currently $0.86, a monthly low reflecting the recent decline past the $0.87 support level. This price point, combined with mixed signals from the market and macro indicators, puts ADA in a precarious position.
In the short term, ADA could consolidate between $0.87 and $1.00, provided no prominent positive or negative signals emerge. This range could serve as a stabilization zone for altcoins while investors wait for stronger signals from the broader cryptocurrency market.
However, failure to reclaim the $0.87 support could send Cardano down to the next support at $0.77. Such a decline would reinforce bearish sentiment and delay any recovery, highlighting the importance of this key price point to ADA’s near trajectory.