Leading analytics firm Santiment says an on-chain metric suggests Cardano has reached favorable price levels for ADA bulls.
The company turns its radar on Cardano’s Market Value to Realized Value (MVRV), which shows the average profit or loss of all coins in circulation at a given price and can be used to suggest price reversals.
According to Santiment, Cardano’s MVRV is at levels that historically have been a bullish turning point for ADA.
“Cardano medium-term 30-day average trading returns have fallen below -15%. This is historically an MVRV level when ADA and many other altcoins see at least a brief reversal in prices to mitigate mounting losses on the networks.”
Source: Mood/Twitter
While Cardano may be able to recover, the analytics firm says crypto in general remains at the mercy of the stock market for now.
Santiment says crypto markets may have to weather the correlation until next month’s Federal Open Market Committee (FOMC) meeting.
“A trend that could continue into the next FOMC meeting in May. Crypto markets remain firmly anchored in the same price patterns as the SP500 and equity markets. The Fed recently announced that a half-point rate hike is likely.”
Source: Mood/Twitter
Looking at Bitcoin, the company notes that a spike in whale stablecoin transactions, or remittances, in excess of $100,000 has preceded local tops and bottoms for BTC.
Santiment says it is closely monitoring the surge in whale activity in stablecoin TrueUSD (TUSD), which suggests that well-funded investors are accumulating BTC.
“TrueUSD, crypto’s sixth-largest stablecoin, is seeing a spike in whale transactions today. The last six hours has been one of the top 10 stretches in transactions over $100,000 this year. Historically, whale transaction spikes are a sign of accumulation.”
Source: Mood/Twitter
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