Cardano

Value

April

when

<ul class="wp-block-list"> 
 <li>Cardano surges 27% in a week, pushing 88.40% of supply into profit</li> 
 <li>MVRV ratio reaches concerning 76.20% level</li> 
 <li>Critical support at $0.93 could determine next move</li> 
</ul> 
<a href="https://thenewscrypto.com/?s=Cardano" target="_blank" rel="noreferrer noopener">Cardano</a> (ADA) has experienced a remarkable transformation in its market dynamics, with a 27% weekly surge creating both opportunities and potential risks for investors. 
The rally has fundamentally altered the profitability landscape for ADA holders, raising important questions about sustainable price momentum. 
<h2 class="wp-block-heading" id="h-majority-of-cardano-holders-in-profit">Majority of Cardano holders in profit</h2> 
The scale of this shift becomes apparent when examining the profitability metrics. Currently, 32 billion <a href="https://thenewscrypto.com/?s=ADA" target="_blank" rel="noreferrer noopener">ADA </a>tokens, valued at approximately $31 billion, sit in profit-making positions. 
This represents 88.40% of the entire circulating supply—a dramatic increase from the beginning of November when only 40% of tokens were profitable. While this surge demonstrates strong market confidence, it also creates complex market dynamics that warrant careful consideration. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="347" src="https://thenewscrypto.com/wp-content/uploads/2024/11/image-237-1024x347.png" alt="" class="wp-image-116020" srcset="https://thenewscrypto.com/wp-content/uploads/2024/11/image-237-1024x347.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/11/image-237-300x102.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/11/image-237-768x260.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/11/image-237.png 1536w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Source:&nbsp;<a href="https://app.santiment.net/" target="_blank" rel="noreferrer noopener">Santiment</a>
 </figcaption>
</figure> 
The Market Value to Realized Value (MVRV) ratio, a key metric for assessing market positioning, currently stands at 76.20%. This elevated reading suggests that ADA’s market value has significantly outpaced its realized value, potentially indicating overvaluation. 
In practical terms, this means the average holder could realize a 76.20% profit if they were to sell their positions at current prices—a tempting proposition that could trigger widespread profit-taking. 
From a technical perspective, ADA currently trades at $0.98, maintaining position above crucial support at $0.93. This level could prove decisive in determining the asset’s next major move. Should profit-taking pressures intensify, a breach of this support might precipitate a decline toward $0.79. 
Conversely, if holders demonstrate restraint and maintain their positions, ADA could push beyond the psychologically significant $1 mark toward $1.15, a price point not seen since April 2022. 
The coming days will likely prove crucial in determining whether ADA’s impressive rally can sustain itself against growing profit-taking pressures, making the $0.93 support level particularly worth watching for signs of market direction.

Cardano’s Rally Creates Profit-Taking Pressure as 88% of Supply Turns Profitable

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