Cardano (ADA/USD) is seriously undervalued. This is based on data from crypto analytics Santiment. ADA traded at a low of $0.36 after a bearish market over the past week.
Using Cardano’s MVRV Z-Score, Santiment data highlights ADA’s low valuation . Therefore, the token trades at the lowest level of its realized value. Since early 2019. A low Z-value indicates that the asset is undervalued. Is the undervaluation a sign of a rebound in the ADA market?
Sentiment implies that ADA has doubled in value in just 3 months, and its The MVRV Z-Score last reached low levels. This was the case when the analytics firm also reported an increase in capitulation across the cryptocurrency market. A capitulation is characterized by a trader closing a position at a loss. This happened before the market rebounded.
The latest data will come even though Cardano is still under pressure. However, the coin has recovered some losses, gaining 4.80% intraday on Monday. The gains came just 24 hours after FTX CEO Sam Bankman-Fried assured members of the exchange’s spot ADA. ADA is the only token in the top 25 exchanges that does not have a spot listing.
AADA is approaching the 23.6% retracement after the latest recovery
Source – TradingView
From a technical perspective, ADA starts Bouncing back above the $0.32 area. Looking at the Fibonacci retracement levels, the cryptocurrency has a swing high of $0.5109 and a swing low of $0.3296. Possible retracements are $0.37 (23.6%), $0.3988 (38.2%), $0.42 (50%), $0.44 (61.8%).
The key retracement levels are likely at the Fibonacci levels shown above.
Should you buy ADA?
While a recovery to $0.32 bodes well for ADA, we have yet to confirm bullish momentum. The cryptocurrency remains below a key support and resistance level at $0.42. This level coincides with the 50% or 61.8% retracement.
Again, the cryptocurrency market outlook is still less convincing. Therefore, we may stay in a bear market for a longer period of time. Most cryptocurrencies
are mixed.
Nonetheless, ADA remains attractive to investors looking for cryptocurrencies with underlying fundamental value force. Potentially, the return of the bull market will usher in a long-lasting rally in the sluggish ADA.
Where to buy ADA
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Capital Network
Capital.com is a global broker that offers its users more than 200 cryptocurrencies. It comes with a range of features such as; excellent security, 24/7 support, demo account and various assets. Best of all, it also has no inactivity, withdrawal or deposit fees, which sets it apart from other crypto brands.
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