#Cardano(ADA) NVT Ratio Rises: What to Expect? 📊💡

Cardano (ADA) is currently in an interesting position with its NVT ratio surging to its highest since June. However, this raises concerns about ADA’s price stability as on-chain activity slows down. As ADA’s price grows faster than network activity, investors are beginning to question whether the price will recover or fall further. Without a significant increase in engagement on the blockchain, ADA may face challenges maintaining its current price level.

#### Maintaining a Crucial Support Level 🔒

Recent data shows that ADA has managed to maintain a crucial support level on the weekly timeframe for over 100 weeks. This position sits at the bottom of an ascending channel structure, which provides an optimistic but cautious outlook for ADA. If ADA is able to climb to the top of the channel, it could yield gains of over 200%. $ADA

#### ADA/BTC Valuation Analysis 🪙📉

Analysis from Benjamin Cowen shows that ADA has struggled relative to Bitcoin (BTC)’s performance, whose dominance is now approaching 60%. BTC’s rising dominance could put further pressure on ADA until Bitcoin stabilizes. If Bitcoin continues its rally, altcoins like ADA could see further declines, although this could also be an opportunity for a major rebound for ADA in the future.

### ADA Price Outlook 📈🔍

Despite the short-term challenges, the current price position makes ADA an attractive entry point for long-term investors. The chance for a further rally is largely dependent on a bullish shift in the broader market, especially if Bitcoin manages to break through $80,000, which would hopefully ease the pressure on altcoins. #CryptoExplorerFiesta #cardano #cardanocommunity #ADA