Cardano

Value

2024

Verge

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<a href="https://u.today/cardano-taps-264-surge-in-netflows-will-ada-price-start-moving" rel="noopener noreferrer nofollow">Cardano</a>, the 11th largest cryptocurrency by market capitalization, is currently at a critical juncture, with the ADA price showing signs of a potential breakout. However, on-chain metrics paint a more complex picture.
According to data from <a href="https://x.com/intotheblock/status/1851209971586740516" rel="noopener noreferrer nofollow">IntoTheBlock</a>, Cardano's Network Value to Transactions (NVT) ratio has surged to its highest level since June. However, this indicates a significant decrease in on-chain activity relative to its price growth.
<blockquote class="twitter-tweet">
 Cardano's NVT ratio has surged to its highest level since June, indicating a decrease in on-chain activity relative to price growth. This classic overvaluation signal is notable given <a href="https://twitter.com/search?q=%24ADA&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ADA</a>'s recent underperformance, suggesting the potential for further downside.Historically,… <a href="https://t.co/yTx83exBXM" rel="noopener noreferrer nofollow">pic.twitter.com/yTx83exBXM</a>— IntoTheBlock (@intotheblock) <a href="https://twitter.com/intotheblock/status/1851209971586740516?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 29, 2024</a>
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The NVT ratio is a key indicator that compares a cryptocurrency's market capitalization to its transaction volume. A rising NVT ratio shows that price increases may not be accompanied by an increase in on-chain activity, perhaps indicating overvaluation.
For Cardano, this classic overvaluation signal remains notable given ADA's recent underperformance, which has seen it plummet 11.4% in the last 30 days.
Historically, elevated NVT ratios have often preceded price pullbacks, which suggests that without an increase in on-chain engagement, Cardano's price might struggle to maintain momentum.
Given this, there remains a potential for further downside in ADA's price, IntoTheBlock stated, with the lack of on-chain activity suggesting that the recent price increase was driven primarily by speculation.
<h2 id="cardano-eyes-potential-breakout">Cardano eyes potential breakout</h2>
Cardano (ADA) begin to rise after hitting support at lows of $0.31 on Oct. 25. The climb has continued in the last three days, and ADA might mark the fourth day of gains if today closes in the green.
Today's rise to intraday highs of $0.351 has brought ADA closer to the daily SMA 50 at $0.355, a barrier which, if surpassed, might see the price targeting the daily SMA 200 at $0.397. Cardano's price has been confined by its daily moving averages of 50 and 200 since March 2024.
Thus, a sustained breakout above the daily moving averages would allow ADA to exit its current range trading and signal a bullish comeback. In this scenario, ADA might aim for new yearly highs past $0.76.
Expectations are high regarding Cardano blockchain's two-part Chang Hard Fork, a significant upgrade to enhance network functionality and decentralized governance. This upgrade might boost Cardano on-chain activity and perhaps trigger a breakout for the ADA price.
Whether the indications presented by the NVT signal would be validated remains unknown, as well as where the ADA price trends next. <a href="https://u.today/cardano-ada-price-on-verge-of-breakout-what-on-chain-metrics-suggest" rel="noopener noreferrer nofollow">Read original article on U.Today</a>

Cardano (ADA) Price on Verge of Breakout? What On-Chain Metrics Suggest

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