Cardano (ADA) Price Struggles to Bounce Back From Seven-Month Low

Cardano’s (ADA) price could struggle to bounce back from a seven-month low after the altcoin fell, following broader market cues.

The investors are all for a recovery, and this could be the one factor that changes the direction of the altcoin.

Cardano Investors Aim for Recovery

Cardano’s price could benefit from the optimism that ADA holders are projecting. Their participation is strong despite the low prices, and their HODLing is impressive. Upon distributing the active addresses by profitability, it can be seen that the investors in profit make up less than 2% of all participating users.

Generally, these investors in higher numbers are a threat to the asset as they tend to lean towards selling. Thus, ADA investors’ resilience of HODLing could benefit Cardano’s price going forward.

In addition to HODLing, ADA holders could also switch to accumulation since the altcoin is ripe for picking according to the Market Value to Realized Value (MVRV) ratio. The MVRV ratio assesses investor profit and loss.

Currently, Cardano’s 30-day MVRV stands at -11%, indicating losses, which may lead to buying pressure. 

Historically, ADA MVRV between -8% and -19% usually signals the start of rallies, marking an opportunity zone for accumulation. Cardano’s price could recover if ADA investors add more tokens to their holding.

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ADA Price Prediction: Recovery on the Cards

Cardano’s price at $0.38 could soon reclaim $0.40 as a support level, provided investors stick to their optimism. The aforementioned cues suggest a bullish path for ADA is likely, enabling a rise to $0.42.

However, for the same to happen, consistent bullishness is necessary. 

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If ADA investors move to offset their losses by booking profits earlier than expected or before Cardano’s price breaches $0.42, it could halt the recovery. As a result, the bullish thesis would be invalidated, creating the possibility of a decline to $0.36 or lower.