Cardano Price Prediction – Can ADA Blast Past $3 Next Year?
Cardano (ADA) price is holding its last line of defense a week after sliding below its critical support at $0.30. The cryptocurrency market has been deplorable over the last two months, with Sam Bankman-Fried and FTX topping the headlines.
Due to the contagion spread from the fall of the FTX exchange, experts predict crypto winter to go well into 2023. However, a steady increase in stablecoin volume, as shared in the latest report from CoinMetrics, shows that there will be enough deployable resources to change the course of the trend once confidence in the crypto sector has been restored. Therefore, a blast in Cardano price to $3 is plausible.
Meanwhile, ADA exchanges hands at $0.2578 at the time of writing (Saturday – European session). CoinMarketCap has reported a 38.78% drop in trading volume to $126 million. The smart contracts token ranks ninth in the market, boating $8.89 billion in market cap.
Cardano price will likely end the year in a seemingly endless rabbit hole after correcting 91.6% from its historical high of $30.9 on September 2, 2021. ADA obliterated 82.6% of its value in just a year, further paralyzing investors.
The Market Value Realized Value (MVRV) profit or loss model has spent the better part of the year below its mean line at 1. Santiment outlines that an asset would be undervalued when the MVRV slides below the mean line. Investors tend to hold onto their tokens longer in such conditions. Some would even buy more in anticipation of a rally.
Therefore, an MVRV ratio of -15.09 implies that ADA is in a buy zone, awaiting a catalyst for a rebound. On the other hand, investors tend to sell as the MVRV flips past the mean line – to book profits.
Some investors, whales to be specific, have heeded the call and
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