Leading analytics firm Santiment says that one on-chain metric is hinting that Cardano has reached an opportune price level for ADA bulls.
The firm locks 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 a level that has historically been a bullish turning point for ADA.
“Cardano’s average trading returns on the 30-day mid-term interval has fallen below -15%. This is historically an MVRV level when ADA and many other altcoins see at least a short turnaround in prices to alleviate the losses mounting on networks.”
While Cardano may be in a position to rally, the analytics firm says that crypto, in general, remains at the mercy of the stock market for now.
Santiment says that crypto markets may have to weather the correlation until the Federal Open Market Committee (FOMC) meeting next month.
“A trend that may continue until the next FOMC meeting in May, crypto markets remain firmly entrenched in the same price patterns as the SP500 and equities markets. The Fed recently announced that a half-point interest rate hike is likely.”
Looking at Bitcoin, the firm notes that surges in whale stablecoin transactions, or transfers worth over $100,000, have preceded local tops and bottoms for BTC.
Santiment says it is keeping a close watch on the rise of whale activity in stablecoin TrueUSD (TUSD), indicating that deep-pocketed investors are accumulating BTC.
“TrueUSD, crypto’s 6th largest stablecoin, is seeing a spike in whale transactions today. The past six hours has been one of the 10 largest stretches in $100k+ transactions this year. Historically, whale transaction spikes are a sign of accumulation.”
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