Why Cardano Rally May Continue After 65% Weekly Rise | Airdrop Alert Pro

Following an impressive 65% price surge over the past week, Cardano’s (ADA) rally is likely to continue. This outlook stems from its historical performance and expected investor behavior.

ADA is currently trading at $0.72, its highest level since March, and may rise further. this On-chain analysis It sheds light on why this is happening, despite calls from some analysts for a major correction.

History suggests Cardano’s breakthrough may have just begun

A key indicator of this outlook is the market value to realized value (MVRV) ratio. MVRV is a metric that compares a cryptoasset’s market value to its realized value. This ratio identifies potential market tops and bottoms and provides insight into investor behavior.

Generally, the higher the MVRV ratio, the higher the holder’s profitability and willingness to sell. However, when the ratio decreases, meaning unrealized gains decrease, investors may be less inclined to liquidate their assets.

For ADA, the 30-day MVRV ratio is -7.27%, indicating that if all Cardano holders for salethe average return on investment may be a loss. Historically, when the ratio is at this level, it means The price of ADA may continue to climb.

As shown in the chart below, ADA experienced an MVRV ratio adjustment of 55.56% in March. Therefore, if history repeats itself, Cardano’s price could rise well above $0.72 in the short term.

also, Robinhood Relists Cryptocurrencies It shows that demand for ADA may surge – especially from the United States. If that’s the case, predictions of higher value could become a reality.

Additionally, the Historical Inflow/Outflow of Money (HIOM) indicator, which evaluates the difference in profitable addresses to gauge market momentum, also supports this outlook. A decline in this indicator indicates that more holders are short of money, which often discourages new investments.

However, in the case of Cardano, the percentage of profits accounted for by addresses has increased, which may encourage investors to wait and see Buy Ada In the short term. If this buying pressure materializes, it could push the value of the cryptocurrency higher.

ADA Price Prediction: Expected to Rise 500%?

On the weekly chart, The same seems to be true for Cardano’s rally This was the trend from 2020 to 2021, during which time ADA surged 3,653%. The previous advance was triggered by a bullish crossover above the 20-week exponential moving average (EMA) and the 50-week exponential moving average (EMA).

During this period, ADA climbed from $0.061 to $2.29. Currently, the 20 EMA (blue) has just crossed above the 50 EMA (yellow), indicating renewed bullish momentum for the coin. While a similar percentage rebound may be unlikely, ADA could still make big gains If past performance affects future trends, the impact in the coming months can be as high as 500%.

If this happens, ADA could rise to $2.03. Rising Bitcoin (BTC) prices could also accelerate this trend, especially as Cardano seems to have a strong correlation with it. However, this may not happen if selling pressure intensifies. Conversely, ADA may drop to $0.33.