- Correlation coefficients show that market trends are almost parallel.
- The data on the chain suggests that investors should expect further gains.
According to IntoTheBlock Cardano [ADA] There is a strong correlation between Avalanche [AVAX] You can also find out more about the following: Polygon [MATIC] The top cryptocurrency is Bitcoin.
As at the time of publication, the correlation was 0.99. MATIC’s correlation was 0.98 over a period of 60 days. The correlation coefficient can range between -1 and +1, where the first value indicates significant divergence.
The other hand is that a reading A close proximity to +1 is indicative of a strong trend, as was seen with Cardano. At the time of writing ADA is currently trading for $0.45. This represents a 26.4% decrease in a year to date (YTD).
A trio in deep waters
For AVAX, its value was $36.94— a 11.73% decrease within the same period. MATIC was sold at $0.71 and marked a drop of 29.21%.
AMBCrypto examined the mood around AVAX and MATIC to see if Cardano will continue in that direction.
Santiment provides the metric of Weighted sentiment, and the result is a reading of -1.613. AVAX had a reading of -1.018, while MATIC was at -1.544.
Weighted Sentiment shows The unique social volume is measured through comments made about an asset. Positive metrics indicate that participants in the market are optimistic, which could lead to an increase in demand for those assets.
The readings were all negative, which indicates a low level of confidence. As a result of this, it is possible that ADA prices, AVAX prices, or MATIC price may decrease.
This highly negative feeling could be a sign that a period of accumulation is coming before an important surge.
Soon, the tokens could return to their bull phase
To confirm this, however, we must analyze the MVRV (Market Value to Actual Value) ratio. This measure tells you if your cryptocurrency is valued correctly or not.
More profits are made by holders when the MVRV increases. They will be more willing to sell. Andererseits, the MVRV ratio is a good indicator of how much profit holders have and are willing to sell. decrease The metric indicates that more investors are experiencing unrealized losses.
Most people will choose to HODL in this situation. Cardano had a 30-day MVRV of -5.313% at the time this article was published. If every ADA holder sold their ADAs within the past 30 days, it would be an unrealized profit.
MATIC had a metric of 1.608%. AMBCrypto noted that the ratios had decreased. In the context of a bull market, it is reasonable to assume the tokens undervalued.
Here’s a list of realistic and not-so-realistic images. AVAX’s market cap in ADA terms
If the price starts to rise, ADA may rally to $0.67. AVAX could move up to $50.35 if the situation is similar.
The price of MATIC may also move in the direction of $1.06 if the MATIC stock is on a rebound.
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Source: ambcrypto.com