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It is not a secret that Cardano is one of the least profitable assets on the cryptocurrency market. However, it is not a problem for some investors who prefer the fundamental value of the project rather than its performance among traders, but ADA's undervaluation may change the situation in the foreseeable future.
According to the MVRV-Z score, Cardano is sitting at the lowest relative position compared to its realized value since 2019, which makes it the most undervalued it has been in the last 45 months. The indicator measures the valuation of an asset based on average trader losses.
📊 #Cardano now sits at its lowest relative position compared to its realized value since Jan, 2019. This is a sign of undervaluation based on average trader losses. $ADA's price doubled the following 3 months the last time its MVRV Z-Score hit this level. https://t.co/D8Bwk2GWEB pic.twitter.com/gnOuGVqqOq
— Santiment (@santimentfeed) October 22, 2022
The last time the MVRV-Z indicator flashed, ADA's price doubled in only three months. Considering all the underlying factors today, Cardano may repeat the success we saw a few years ago. However, the technical overview does not have any positivity.
Horrendous price performance
In the last 30 days, Cardano lost almost 30% of its value, becoming one of the weakest assets on the market despite being oversold prior to it. Such a rapid drop in value is hard to explain, considering the lack of any happening around the coin except the rapid growth of the Cardano ecosystem.
Vladislav SopovAccording to GitHub, Cardano remains one of the most actively developed cryptocurrencies on the market, which is confirmed by the variety of new releases like DeFi solutions and NFT marketplaces.
However, the project's growth is not something cryptocurrency investors seem to value today, considering ADA's poor short- and long-term performance on the market. Since 2021, ADA holders have not seen an uptrend. In order to get back to the pre-ATH values of 2021, Cardano has to go through a 780% rally.
Alex Dovbnya
Dan Burgin
Vladislav Sopov