cardano (ADA) is a firm favorite of many crypto investors. However, the price of ADA has not been going very well for some time. However, according to crypto analysis firm Santiment, ADA’s current price is not a good representation of its value. The researchers state that ADA is severely undervalued and that it could just double in price in the next three months.
Cardano underrated
Santiment concluded that ADA is undervalued by looking at the so-called market value to realized value (MVRV) ratio. According to Santiment, this is an excellent way to determine whether the price of a token also corresponds to the underlying fair value.
“While it is not without its drawbacks, the metric provides an easy way to measure whether a particular currency is currently overvalued or undervalued, and the likelihood of an upcoming trend reversal.”
Cardano is clearly undervalued today, according to Santiment. At the moment, ADA’s MVRV ratio is at its lowest point since January of 2019. In addition, Santiment indicates that the last time this ratio was so low, ADA’s price doubled in price in the following three months.
#Cardano now sits at its lowest relative position compared to its realized value since Jan, 2019. This is a sign of undervaluation based on average trader losses. $ADA‘s price doubled the following 3 months the last time its MVRV Z-Score hit this level. https://t.co/D8Bwk2GWEB pic.twitter.com/gnOuGVqqOq
— Santiment (@santimentfeed) October 22, 2022
Although the past obviously does not guarantee price movements in the future, according to Santiment it is clearly a bullish signal for ADA. Perhaps the price can finally start a rally again after months of underperformance?
ADA rate to $1?
At the time of writing, ADA is trading at just over USD 0.35. Compared to the all time high in September of the previous year that is a decrease of no less than 89%!
On Twitter we asked our according to what they expect from the ADA rate? Will we see another ADA price above $0.70 before the end of 2022? Or will ADA only sink further? Let us know what you think in the poll Below.
The price of #ADA stands like many others #cryptocurrencies deep under water. What do you think? Go #cardano will start a final sprint in the last quarter and at what height will ADA close this year?
— Crypto Insiders (@CryptoinsidersS) October 22, 2022