Crypto analytics firm Santiment says cross-chain signals to Cardano show it ADA It is currently trading at a huge discount.
Santiment takes a look at Cardano’s MVRV Z-Score, which compares an asset’s total market value to its total realized market capitalization.
Traditionally, a low Z-Score indicates that the asset is undervalued. Santiment says the ADA’s MVRV Z-Score is at its lowest level since January 2019.
“Cardano now occupies its lowest relative position relative to its realized value since January 2019. This is a sign of underestimation based on average trader losses. The price of ADA doubled in the following three months the last time the MVRV Z-Score reached this level.” .
At the time of writing, ADA is trading at $0.34, down more than 88% from its all-time high.
The analytics firm also says that the cryptocurrency market in general is showing signs of giving up, with many traders closing their positions at a loss. According to Santiment, capitulation is likely to lead to a market rebound.
“Signs of capitulation appeared on Friday, including transactions from addresses whose assets are trading at a loss. Bitcoin sees its lowest loss-to-profit ratio in 4.5 months, and Ethereum is at historic lows.”
While many crypto assets are seeing signs of giving up, Santiment has also recorded a large accumulation of cryptocurrencies by wealthy investors.
Shinlink’s shark and whale addresses (with 10,000 to 1 million links) have been busy accumulating during the 2022 bear market. Since March 3, these addresses combined have added 47.31 million links to their wallets. This translates to an additional investment of $312.7 million.”
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making any high-risk investments in bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrency or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock / Bruce Rolff