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Cardano: This Indicator Reveals Buyers' Indecision as Price Nears $0.50

Sun, 06/12/2022 - 16:30
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Tomiwabold Olajide
Since Cardano's 30-day MVRV is neutral, buyers might remain on fence
Cardano: This Indicator Reveals Buyers' Indecision as Price Nears $0.50
Cover image via stock.adobe.com

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Although the average network returns of traders have slipped back into negative territory, Cardano's 30-day returns remain neutral, according to on-chain analytics firm Santiment. Because Cardano's 30-day MVRV is neutral, buyers might remain on the fence, leading to a slightly longer period of consolidation.

The MVRV reveals the sentimental mood surrounding an asset at any particular time, based on probability, and deduces the possibility of future price movement. MVRV, or Market Value to Realized Value, is a ratio that determines whether or not an asset's price is fair. MVRV could be used as a stand-alone statistic to predict market peaks and bottoms.

Average MVRV divergences between -50% and +50% are considered "neutral," meaning they are less than halfway between the "Opportunity Zone" and the "Danger Zone." The "Opportunity Zone" has undervalued assets, while the "Danger Zone" has overvalued assets.

Cardano's price dropped after a significant recovery that saw it reach highs of $0.669 on June 8. In keeping with the current market downturn, ADA was down 11.07% at $0.51 at the time of publication. Cardano remains in a trading range, with resistance at $0.67 and support at $0.39, despite the price drop.

Whales and large entities generally buy assets at a discount during periods of dips or consolidation.

According to WhaleStats, Cardano was under buying pressure from BNB whales looking to accumulate during the recent drop.

Cardano introduces Lace wallet

Cardano has introduced Lace, a lightweight web3 wallet that the company describes as a "one-stop-shop" for all blockchain operations.

Lace plans to evolve to support many additional blockchains as well as several cryptocurrencies, as IOG sees interoperability as critical to assuring widespread blockchain use.

The incoming lace wallet intends to support identity and voting on Cardano in future iterations. Integration with Atala PRISM for identity and personal data management, as well as Project Catalyst for simple registration and voting, could also be included. Also, integration with EVM sidechains and Hydra might be added in the future.

According to IOG, Lace wallet could be released in a closed beta version soon.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.