Cardano (ADA) Might Be Worth Keeping Eye on, Here’s Reason

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As a researcher with experience in the cryptocurrency market and a strong emphasis on data analysis, I find Cardano (ADA) to be an intriguing investment prospect based on recent metrics suggesting potential undervaluation. The percentage of supply in profit metric, which evaluates the ratio of holders who purchased their crypto at lower prices versus current prices, is particularly noteworthy for ADA.

Keep an eye on Cardano (ADA), the tenth-largest cryptocurrency in terms of market capitalization. A notable indicator points towards potential undervaluation of this digital asset.

A significant sign of ADA being underpriced can be found in the “percentage of supply in the green” metric. This percentage is determined by contrasting each crypto unit’s acquisition cost with its present value and subsequently assessing how much of the total supply is currently generating a profit.

When an asset’s supply-to-profit ratio is high, it often signifies that most investors acquired the asset at lower prices in the past. These ratios tend to soar during bull markets, like the one occurring between October 2023 and March 2024. This surge is typically associated with overbought market conditions. Nevertheless, the percentage of supply in profit is most effective when used alongside other indicators, such as whale transactions and MVRV (Maker’s Value Realized vs. Cost).

As a crypto investor, I’m always keeping an eye on the latest market trends and analysis from reputable sources like Santiment. In their recent tweet, they shared some interesting data about the supply of each major cryptocurrency that is currently in profit. For Bitcoin, it was 89.9%, meaning that over 89.9% of the total circulating supply is in the green. Ethereum followed closely with 84% of its supply being profitable. XRP came in at 77%, Cardano at 51.9%, Dogecoin at 76.7%, and Chainlink at 78.2%. This information can help inform investment decisions based on the current profitability trends of each cryptocurrency.

As a researcher studying crypto markets, I calculate the percentage of profitable supply by comparing the purchase price of each unit to its current market value and identifying what proportion of the total supply is currently generating profits. When an asset exhibits a large proportion of profitable supply, it often indicates bullish sentiment and potential price growth.

— Santiment (@santimentfeed) April 26, 2024

As a researcher studying the cryptocurrency market trends with Santiment’s insights, I would advise keeping a close watch on the lesser-supply cryptos showing profits. These coins can potentially indicate undervalued assets compared to their counterparts in the market. One such coin that catches my attention is Cardano, which exhibits a lower supply percentage compared to other major cryptocurrencies.

Based on the given data, approximately 51.9% of circulating ADA is currently generating a profit. Such a high percentage may be an indicator that the price of Cardano could potentially experience a rebound.

Currently, Cardano has experienced a 3% decrease in value over the past 24 hours and a more substantial 6.52% drop over the last week, now trading at approximately $0.453. It’s important to note that this price is significantly lower than its all-time high (ATH) of $3.10, which was reached on Sept. 2, 2021. This means Cardano has experienced a considerable decline, amounting to an 85.38% reduction from its peak value.

As a crypto investor, I’ve been keeping an eye on the latest findings from IntoTheBlock, an on-chain analytics firm. According to their recent analysis, Cardano (ADA) distinguishes itself among other Layer 1 networks with just 35% of its holders currently in profit. The million-dollar question is: Is this a promising opportunity or a potential warning sign? Only time will tell.

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2024-04-27 15:29