Cardano Price Eyes $0.81 High as MVRV Ratio Signals Potential Rebound
Highlights
- Multiple support accumulated at the $0.45 mark indicates a high area of interest for crypto buyers.
- A potential bearish crossover between the 20-and-200-day EMA may prolong the correction trend in Cardano coin.
- The intraday trading volume in the ADA coin is $562.6 Million, indicating a 19% gain.
The pre-halving consolidation in Bitcoin continues to drive a sideways action in top altcoins including Cardano. The daily chart projecting candles with short-bodied and higher wicks indicates no clear dominance from buyers or sellers. However, the ADA price hovering above the confluence of key support indicates the asset is well positioned for a bullish bounce.
Also Read: Cardano’s Charles Hoskinson Fumes As RFK Jr’s Family Backs Joe Biden
Cardano Price Correction Finds Footing at Fibonacci Support
The last six weeks’ correction in Cardano price can be traced through a downsloping trendline acting as a dynamic resistance. From the peak of $0.81, the asset lost 50% of its value to mark a low of $0.4.
However, with the Bitcoin price sustaining above the $60000 psychological level, the altcoin market shifted sentiment to the local bottom formation. Thus, the ADA price surged to the $0.472 mark trying to hold its ground above the 61.8% Fibonacci retracement level.
In theory, this FIB level acts as a crucial support zone during a market correction offering buyers a suitable launchpad to counter.
Moreover, in a recent analysis shared by Alicharts, a key indicator for Cardano has hinted at a possible price surge. The MVRV (Market Value to Realized Value) Ratio for Cardano, which is a metric used to assess the profit or loss status of ADA holders, has once again dipped below -22%.
Historically, a similar dip was observed right before ADA’s price experienced a substantial increase of over 75%. With the MVRV Ratio falling under the -22% mark again, alicharts suggests that we might be on the cusp of another impressive price rebound for Cardano’s native token.
Thus, if the upcoming Bitcoin halving triggers renewed recovery in the altcoin market, the ADA price may breach the overhead resistance trendline and chase the potential target of $0.683, followed by $0.81.
Also Read: Bitcoin Halving 2024 : 5 Myths, Facts, and the Path Forward Revealed
Technical Indicator:
- Relative Strength Index: The daily RSI slope reverted from the oversold region indicating the ADA price may enter a relief rally in the coming week.
- Exponential Moving Average: The 200 EMA slope of the weekly chart increases the support strength at the $0.445 mark.
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