Analyst Predicts Cardano (ADA) To Rally By 75% As MVRV Ratio Plummets

In recent weeks, ADA, the native token of the Cardano network. Its rather rough price performance, down 18.77% over the past month, has led to a lot of speculation. This negative price movement is similar to much of the crypto market following the unprecedented crash in Bitcoin prices.

However, despite the ADA issues, popular crypto analyst Ali Martinez supports the coin, which has seen an impressive recovery. Interestingly, Martinez’s prediction is that the digital asset is looking to consolidate its footing, having gained 9.92% in the previous day. Data from CoinMarketCap.

ADA approaches annual high of $0.80

in post In X on April 19th, Ali Martinez said that ADA could record a significant price increase in the near future. Martinez predicted that with the MVRV ratio below -22%, the 10th largest cryptocurrency could soon record a 75% rise.

For context, the market value to realized value (MVRV) ratio is a metric used in cryptocurrency technical analysis to evaluate the valuation of a digital asset relative to its realized value. This is basically used to know whether a token is overvalued or undervalued based on the market price compared to the average cost basis of the token’s holders.

An MVRV ratio of -22% indicates that ADA’s market value is significantly lower than its realized value. However, Ali Martinez points out that the last time the coin was this undervalued was in June 2023, after which it rose 75% the following month.

Based on such historical price data, cryptocurrency analysts believe that ADA could repeat a similar performance in the coming weeks and reach a market price of $0.80, which would be the highest price reached last year. I predict that I will be deaf. As of this writing, ADA is trading at $0.46, up 2.43% in the past hour. Similarly, the daily volume of the token increased by 43.07% and $595.3 million.

Cardano begins a new era of decentralized governance

In other news, the Cardano network is set to launch a new era of decentralized governance. announcement By Frederic Gregard, CEO of Cardano Foundation. In an April 18 post on X, Gregard said that the creation of a complete constitution for this change of government was “just around the corner” and that an interim constitution was currently in effect.

According to the head of the Cardano Foundation, the interim constitution emphasizes the network’s core values ​​such as transparency, openness and responsible decision-making. This aims to give each ADA holder the influence to decide the future of the Cardano ecosystem through an inclusive government where all stakeholders are given certain rights and responsibilities as stated in the constitution. is.

ADA trading at $0.4778 on the daily chart | Source: ADAUSDT chart on Tradingview.com

Featured image from Forbes, chart from Tradingview

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