Obscure Signal Suggests Imminent ADA Surge: Cardano Price Review

In the last 24 hours, the Cardano price has seen a slight rebound, now showing a decrease of only 0.06% following a considerable drop.

At the same time, a previously overlooked on-chain metric has recently reached a new peak, suggesting a possible upward movement.

This minor price fluctuation places Cardano at a 2.79% deficit since last Friday. While this is significant, it remains among the least impacted, as other prominent altcoins have faced more drastic downturns.

Indeed, with today’s rebound, interest from traders in Cardano seems to be heightened. The altcoin’s trading volume has risen by 31.08% to $277.66 million over the last 24 hours.

Cardano Price “Undervalued” as Fundamentals Rise

In an X post dated August 13th, the blockchain analytics firm IntoTheBlock unveiled a significant achievement for Cardano.

The proportion of Cardano tokens owned by long-term holders (LTHs), who have possessed the asset for more than a year, has reached an unprecedented level.

Balance held by time. Source: IntoTheBlock.

Currently, nearly 40% of Cardano’s supply is in the hands of LTHs, distributed across 3.2 million addresses.

IntoTheBlock pointed out this as particularly bullish, indicating a “substantial level of confidence from its holders.”

This confidence continues in spite of Cardano’s lackluster performance this cycle. It remains the poorest performing asset among the top ten cryptocurrencies by market capitalization, recording a year-to-date decline of over 43%.

Interestingly, only 18% of holders (784,110 wallets) are presently in profit.

Despite these obstacles, Cardano’s long-term holders are increasing their stakes rather than liquidating, underscoring their faith in the token’s long-term prospects.

Active addresses by profitability. Source: IntoTheBlock.

IntoTheBlock highlighted that Cardano processes around $7.2 billion daily in on-chain volume – a figure that exceeds many other blockchains.

This places Cardano at an “impressively low [Network Value / Daily Transaction Volume (NVT)] ratio of merely 2.62, which might suggest that $ADA is undervalued at its current valuation.”

Cardano Price Analysis – Is a Correction Imminent?

It’s worth noting that Cardano currently remains confined within a narrowly expanding triangle pattern, marked by gradually growing volatility as the asset navigates a phase of fear, uncertainty, and doubt (FUD).

The prolonged existence of this pattern indicates that market participants may be anticipating a significant catalyst, whether it be a news announcement or a shift in the fundamentals, before deciding on a clear price direction.

ADA / USDT 1D Chart. Source: Binance.

Specifically, IntoTheBlock mentioned that Cardano’s adoption has plateaued in this current cycle. The total count of Cardano addresses with a balance has lingered around 4.45 million for over a year.

However, this stagnation does not preclude notable price movement in the near future. Indeed, some technical indicators present a favorable outlook for the Cardano price.

Most significantly, the MACD line (blue) is presently converging towards the signal line (orange) in an upward trend, indicating a potential shift in momentum from bearish to bullish.

In addition, the dots making up the Parabolic Stop and Reverse (SAR) indicator have been positioned below the Cardano price since August 9. This acts as an uptrend, with the SAR offering support, implying that the price is likely to continue its ascent.

If Cardano can sustain this momentum, the immediate resistance at $0.3450 becomes the next critical obstacle. Successfully reclaiming this level could prepare the ground for retesting the pattern’s upper resistance.

Nonetheless, traders should keep an eye out for a successful break above the stubborn resistance provided by the 200DMA (blue) as a crucial signal of a breakout from the pattern. This could clear the path for Cardano to aim for prior highs and possibly initiate a more sustained rally.

Low-Cap Meme Coin Offering High Gains Potential

Despite the Cardano ecosystem’s robust fundamentals, the challenges concerning adoption are unlikely to be resolved in the near future.

Consequently, it is not surprising that traders are diversifying into more promising opportunities like PlayDoge ($PLAY), a new low-cap meme coin garnering the interest of meme aficionados, gamers, and crypto enthusiasts alike.

Get excited, degens – really early alpha footage from your beloved doge game is here.
More details will be revealed tomorrow! pic.twitter.com/c3eDoKcWZR

— PlayDoge (@PlayDogeGame) August 12, 2024

The meme coin market is flooded with Shiba Inu-themed tokens that offer minimal to no real utility. In contrast, PlayDoge distinguishes itself by emphasizing gaming functionality.

It transforms the renowned Doge meme into a play-to-earn Tamagotchi-style virtual pet, tapping into nostalgia from the 90s. This innovative approach may account for $PLAY’s recent success, having raised over $6M in its presale to date.

PlayDoge will allow players to earn rewards by caring for their pets and embarking on adventurous quests. Timely feeding, training, and rest all contribute to the rewards obtained by the diligent pet owner.

At a temporarily fixed presale price of $0.00529, those who act swiftly stand to gain the most. Investors are currently benefiting from an impressive 76% APY. This presents a worthwhile passive income opportunity, even amid recent market fluctuations.

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