Analyst Predicts Cardano (ADA) to Rise 75% as MVRV Ratio Plummets
In a post on X on April 19, Ali Martinez reported that ADA could soon see impressive price increases. Martinez predicted that the tenth largest cryptocurrency could soon record a 75% gain due to its MVRV ratio being below -22%.
For context, the Market Value to Realized Value (MVRV) ratio is a metric used in cryptotechnical analysis to evaluate the valuation of a digital asset relative to its realized value. It is mainly used to find out whether a token is overvalued or undervalued based on its market price compared to the average value of its holders.
An MVRV ratio of -22% indicates that ADA's market value is significantly less than its realized value. However, Ali Martinez notes that the last time the coin was this undervalued was June 2023, after which it rose 75% the following month.
