Cardano

Value

2024

Verge

<figure>
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a>
 </figcaption>
</figure>
<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>
</blockquote>
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

Table of Contents

U_Today

Other articles published on Oct 29, 2024

Shiba Inu Price Prediction: SHIB Soars 11%, But Traders Turn To This PEPE 2.0 For 1000X Potential

Solana Surges Past $180, Fueling Momentum for Celestia and Dogecoin

Base Announces Permissionless Fault Proofs Launch on Oct. 30

Bitcoin ETF Options to Drive Growth in Crypto Derivatives

ApeChain Launches on Mainnet With Arbitrum Orbit

5 best crypto to consider buying this November as Bitcoin nears all-time high

Join our free newsletter for daily crypto updates!