Cardano price is eyeing the $1 level after six months of downtrending, having touched a daily high of $0.92.
Crowd sentiment on Cardano has reached its highest level since mid-November 2021, according to data from crypto intelligence company Santiment.
Cardano’s price has progressively decreased after reaching an all-time high of $3.16 in September 2021, when the Alonzo hard fork was announced.
Cardano and other altcoins have reached a historical “buying opportunity” zone, as evidenced by on-chain and market data given by Santiment.
When the crypto market is more volatile, and retail traders are more likely to follow market trends, some assets become severely overbought, while others remain oversold.
Cardano has reached a position where the 30-day MVRV divergence has traditionally caused ADA prices to rise.
Cardano’s average trading returns in the 30-day mid-term interval have plummeted below -15 percent, according to Santiment, indicating oversold circumstances.
It is noted that this is typically an MVRV level where ADA and many other cryptocurrencies see at least a short price turnaround to offset network losses.
MVRV, or Market Value to Realized Value, is a ratio that allows cryptocurrency investors to determine whether or not a certain asset’s price is reasonable. MVRV is used to determine market tops and bottoms as a stand-alone metric.
ADA Price Remains Undervalued
The Cardano (ADA) network has surpassed significant milestones in recent months. The overall number of ADA wallets has climbed by 100,000 in a month, to 3.2 million as of April 19. With 400 new projects in the works, activity on the Cardano blockchain is exploding. Cardano is now being used in almost 900 projects.
ADA is undervalued, despite gains in network expansion. ADA was trading at $0.90 at the time of publication, down 0.34 percent in the last 24 hours and roughly 7% in the previous week, according to CoinMarketCap data.