Cardano (ADA) is currently trading around $0.80, with an MVRV ratio of 37%, which is overvalued. This poses the risk of profit taking and price correction. Whale activity has reached $28 billion in the last two weeks, supporting ADA’s 137% rally. However, it should be noted that a sharp decline is possible if whales sell. ADA is testing the $0.81 resistance; if this level is not broken, the price could drop to $0.71 or $0.66.
Cardano’s MVRV ratio currently indicates that it is overvalued, which could cause concern among market participants. Historically, a 30-day MVRV ratio between 11% and 20% is considered the danger zone for profit taking. Currently, the MVRV ratio has risen to 37%, increasing the likelihood of profit taking by ADA holders. This could lead to a price drop.
However, despite these alarming MVRV levels, Cardano’s recent rally is supported by strong investor interest. However, in the event of profit taking and increased selling pressure, this momentum could wane. The market is trying to assess ADA’s future movements by monitoring these dynamics.
Whale activity played a major role in Cardano’s recent rally. Trading volumes exceeding $100,000 reached eight-month highs, totaling up to $28 billion. While the presence of whales in the market provides a balancing factor in ADA’s upward movement, it could have a major impact on the price if large investors sell. Whale sales could lead to a sharp decline, while whale purchases could boost market confidence and mitigate potential losses.
Cardano is currently trading at $0.80, just below the critical $0.81 resistance level. It has surged 137% in the past two weeks, hitting its highest price levels since March. However, breaking $0.81 remains a challenging target amid mixed market signals.
In the current conditions, the chances of ADA reaching $1.00 seem slim, as the market is in a bullish consolidation phase. If the resistance level at $0.81 is not broken, ADA may continue to trade below this level in the short term. On the downside, if selling pressure increases, the ADA price may drop to $0.71. A drop below this level could trigger a larger correction and push the price down to $0.66.
