- ADA’s price dropped 25% over the last 30 Days.
- The key metrics on the chain suggest now could be a great time to purchase altcoins.
Cardano [ADA] Santiment, in a recent post on X.com (formerly Twitter), noted that a major on-chain metric is flashing a buy sign.
📊 The Relative Strength Index shows that the top market capitalizations are dominated by the Relative Strength Index #cryptocurrencies The market is in a slight buying zone. The popular momentum oscillator that is used for technical analysis suggests #Cardano Buy low as an option. https://t.co/czXDUodAY3 pic.twitter.com/hhYEwIkQZT
— Santiment (@santimentfeed) May 7, 2024
According to the data provider on-chain, ADA’s Relative Strength Index is a useful tool for traders. It helps them identify conditions where they are overbought, oversold,
“Notably low compared to other caps, making it a slightly better buying opportunity.”
RSI measures both the speed and magnitude of price changes. The RSI is used to identify potential trend changes by traders.
If it is above 70 then the asset has been overbought and there could be a price adjustment. Its value increases when it is “low” If the price is below 30, then it is likely that there will be a possible upward movement.
ADA’s RSI stood at 29,97 as of the press date, indicating a coin that was sold out.
Get ready to go ape
It is essential to determine the MVRV (Market Value to Actualized Value) ratio to confirm if it’s time to purchase ADA.
This ratio tracks the difference between the market value of an asset and the average cost per coin or token acquired.
Positive MVRV above 1 indicates that the asset has been overvalued. This suggests that an asset’s market value today is greater than what most investors paid for their assets.
In the opposite case, a MVRV that is negative indicates an undervaluation of the asset. This value indicates that the current market price for the asset is lower than the total average of its tokens in circulation.
If the MVRV of an asset is negative, this presents a great opportunity for a buyer. The asset is trading at a discounted price compared to its historic cost.
Click Here to Read Cardano’s [ADA] Price Prediction 2023-24
The MVRV Ratio of ADA, when compared to different moving averages, returned negative values. The MVRV ratio of ADA, when compared to different moving averages, returned negative values. Santiment’s Data shows that the MVRV of the coin on the 30-day and the 365-day moving averages were respectively -13.55% & -4.5% at the moment.
ADA changed hands during press time for $0.44. CoinMarketCap’s data.
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Source: ambcrypto.com