12 April, 2024



Cardano (ADA) Is Priced Significantly Lower Than Data Suggests It Should Be

24 Oct, 2022

22 Nov, 2023

Cardano (ADA) has been in a bear market since the beginning of 2019. The undervalued nature of Cardano is not new to those following on-chain analytics. Metrics like MVRV Z-Score can reveal the intrinsic value of a crypto asset.

This is because they are built on the assumption that crypto assets trade at their intrinsic worth based on all available data. The metric of MVRV Z-Score can be used to find undervalued and overvalued tokens.

In the case of Cardano (ADA), the MVRV Z-Score shows that ADA is “significantly” undervalued, according to data compiled by LongHash. The ratio indicates that an asset’s market value is far lower than its real worth based on its trading volume, market capitalization, and price. In addition, the MVRV Z-Score also reveals that Cardano is currently undervalued by 100%.

Besides on-chain data, other factors have contributed to the current state of ADA, like the delay in Shelley update. This has made some investors wary of Cardano. However, considering the rapid growth of Cardano and its huge potential, it seems like a good time to invest in ADA.

What does technical indicators suggest about ADA?

The MACD and RSI indicators show that ADA is currently experiencing a bearish trend. However, as the price of ADA has been highly volatile in the past, it is difficult to predict its short-term trajectory. 

Source: Tradingview

Long-term investors may consider holding onto their ADA tokens in anticipation of a potential price increase in the coming months and years. Additionally, many other promising projects in the crypto space could potentially offer better investment opportunities than ADA at this time. Some examples include EOS, Tezos, and Cardstack (CARD).

Overall, investing in Cardano today could be a good opportunity for those looking to profit from an undervalued asset with huge potential. However, as with any investment decision, it is important to do your research and consider all potential risks before making any financial commitments.

Conclusion

There are a number of reasons to be optimistic about the future of Cardano. If you’re thinking about investing in ADA, now might be the ideal time to do so. However, it’s important to do your own research and carefully consider all the risks involved before making any investment decisions.

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