According to the Santiment’s Market Value to Realized Value (MVRV) indicator shared by a popular crypto analyst, Ali Martinez, Cardano (ADA), the 7th largest cryptocurrency by market capitalization, seems to be currently undervalued at recent prices.
In the tweet, Martinez captioned an illustrative chart and pointed out that the indicator shows that Cardano, the largest proof of stake (PoS) blockchain, has not been this undervalued since the crypto crash initiated by the COVID19 outbreak of March 2020.
Ali Martinez tweeted, “Cardano hasn’t been this undervalued since the COVID crash in March 2020! The MVRV 365D (measures the P/L of addresses that acquired $ADA in the last 365 days) suggests that #ADA holders sit at an average loss of -26%.”
#Cardano hasn't been this undervalued since the COVID crash in March 2020!
— Ali Martinez (@ali_charts) February 9, 2022
Market Value to Realized Value (MVRV) is a ratio that allows cryptocurrency investors to determine whether or not a certain asset’s price is fair.
MVRV is utilized to determine market tops and bottoms as a stand-alone metric. The indicator is always regarded as successful based on previous data. And it’s worth noting that the metric correctly predicted the recent XRP price surge.
The lower the MVRV ratio, the higher the possibility of upward price movement, as this key index calculates the average profit or loss of previous addresses that bought the asset under observation.
For Cardano (ADA), the MVRV 365D that measures the profit or loss of addresses that acquired ADA in the last 365 days suggests that ADA holders sit at an average loss of -26%. At the time of filing this report, ADA is trading at $1.18, with a relatively 1% price uptrend in the last 24 hours.