Is Cardano (ADA) Preparing for a Recovery After a 25% Price Correction?

146 0 0

In Brief

Cardano’s price fell out of a falling wedge in the last four days to note a 25% decline and is now noting recovery.
ADA holders are supporting this recovery and are looking at the sudden surge in participation on the network.
The altcoin is ripe for accumulation since the market value is low and the potential for recovery is high.

Is Cardano (ADA) Preparing for a Recovery After a 25% Price Correction?

Cardano’s (ADA) price followed the broader market cues, which declined by more than 25% on the daily chart over the weekend.

As ADA gears up for a potential recovery, investors display bullish signals that may pave the way for a rally in the cryptocurrency.

Cardano Investors Can Take Back Control

Cardano’s price has historically reacted to ADA holders’ actions, which could be key to recovery. The whale investors conducting transactions on the network are increasing their holdings.

The addresses holding between 1 million to 10 million ADA have purchased more than 30 million ADA worth $14.6 million in the last three days. This is despite the recent correction suggesting whales are expecting a price rise and are accumulating accordingly.

Furthermore, the asset is in the peak accumulation zone, looking at the Market Value to Realized Value (MVRV) ratio.

Read More: How To Buy Cardano (ADA) and Everything You Need To Know

The MVRV ratio gauges investor profit/loss. Cardano’s current 30-day MVRV of -19% suggests losses for recent buyers, possibly leading to accumulation. Historically, ADA recovery happens between -13% and -21%, identifying it as an opportunity zone for accumulation.

Thus, Cardano’s price could benefit from the investors’ actions.

ADA Price Prediction: Recovering the Losses

Cardano’s price trading at $0.48 is already on its way to note recovery. Considering the above-mentioned factors, ADA could possibly continue this recovery to reclaim the support of $0.56, 16% above the present price. This would mark a 25% rise for the third-generation cryptocurrency.

On the other hand, if ADA fails to breach the resistance marked at $0.50, it could invalidate the bullish thesis. This line has been tested multiple times for both support and resistance, cementing it as a crucial barrier.

Read More: Cardano (ADA) Price Prediction 2024/2025/2030

Failing to breach it would result in a drawdown of $0.44, which could cause a fall to $0.40.

This article is sourced from the internet: Is Cardano (ADA) Preparing for a Recovery After a 25% Price Correction?

Related: Solana (SOL) Price at Risk of Steeper Correction

In Brief Solana price failing to break past the $200 mark this week has resulted in a bearish consolidation. Traders are losing their bullishness, as evidenced by the 15% drop in Open Interest in just 48 hours. Institutions, however, have made SOL their premier choice over all other altcoins, pouring $25 million. For nearly two weeks, the Solana (SOL) price has been attempting to surpass the $200 mark but has yet to succeed in this endeavor. This struggle has likely impacted the bullish sentiment among investors, potentially leading to a further decrease in price. Solana Investors Lose Hope At the time of writing, Solana’s price, standing at $189, has failed to break through the $200 resistance level. This failure is reflected in a decrease in investor optimism, as evidenced by…

# Analysis