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HomeCryptocurrencySantiment States Two On-Chain Metrics That Show Cardano (ADA) Is Undervalued

Santiment States Two On-Chain Metrics That Show Cardano (ADA) Is Undervalued

Just like many other crypto assets, ADA, the native token of the popular smart contract platform, Cardano, has greatly underperformed this year despite the execution of the critical Vasil upgrade. Notably, data show that ADA is down 81.99% in the last 12 months and is currently trading for $0.2524 per coin, at the time of writing.

While the crypto market remains flat with no signs of recovery in the short term, insights from a top Santiment community member SanR, indicate that ADA is preparing for a massive rally as Cardano token whales and sharks addresses continue to accumulate hefty volumes of ADA. For context, Cardano sharks and whales are users holding between 100,000 to 1,000,000 units of ADA and between 1 million and 10 million ADA respectively. 

According to the crypto analyst, the two on-chain metrics that give the bullish sentiment for ADA include the divergence between price and whale activity and the exhaustion of sellers. 

Read Also: Cardano Founder Picks High Interest in NFTs, Highlights Key Importance of the Technology

Additionally, SanR stressed that ADA is highly undervalued but he believes an increase in the price of the 9th-largest crypto asset by the market capitalization is near, given that “on every big price decrease there are fewer and fewer coins moving at a loss.” 

In the words of the Santiment analyst, “We are near the area of filling the volume gap. We may expect some serious buying at those levels – bullish. Based on the things mentioned above, I believe ADA’s price will increase in value. However, without any other data, it is difficult to accurately assess the validity of this analysis. It is important to consider multiple factors and carefully evaluate the available data when making investment decisions. This is purely for SanR,” he concluded.

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Ndianabasi Tom
Ndianabasi Tom
Ndianabasi Tom joined the crypto and blockchain industry in late 2018. He is an all-rounded crypto journalist and content writer. At TimesTabloid, he covers the industry's latest news, developments, and other educational content. He is a graduate of Petroleum Engineering.
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