In recent weeks, ADA, the native token of the Cardano network. has drawn much speculation due to a rather turbulent price performance resulting in a decline of 18.77% in the past month. This negative price movement is similar to the majority of the cryptocurrency market following unprecedented massive dips in the price of Bitcoin.
However, despite ADA’s troubles, popular crypto analyst Ali Martinez is backing the coin to pull off a remarkable rebound. Interestingly, Martinez’s prediction comes as the digital asset attempts to find its feet, gaining by 9.92% in the last day, according to data from CoinMarketCap.
ADA Tipped To Hit $0.80, Record Yearly High
In a post on X on April 19, Ali Martinez shared that ADA may soon record an impressive price surge. Martinez predicted the tenth largest cryptocurrency could soon record a 75% gain due to its MVRV Ratio being lower than -22%.
For context, the Market Value to Realized Value (MVRV) ratio is a metric used in crypto technical analysis to assess the valuation of a digital asset relative to its realized value. It is basically used to know if a token is overvalued or undervalued based on its market price compared to the average cost basis of its holders.
The last time #Cardano‘s MVRV Ratio dipped below -22%, $ADA‘s price soared by over 75%. With the #ADA MVRV Ratio back under -22%, we could see another impressive rebound! pic.twitter.com/ABf0mp4pR4
— Ali (@ali_charts) April 19, 2024
An MVRV ratio of -22% indicates that the market value of ADA is significantly less than its realized value. However, Ali Martinez notes the last time the coin was this undervalued was in June 2023, after which it rose by 75% in the next month.
Based on such historical price data, the crypto analyst predicts ADA could replicate a similar performance over the next few weeks, attaining a market price of $0.80, which would represent its highest value in the last year. At the time of writing, ADA trades at $0.46, with a 2.43% gain in the last hour. In a similar fashion, the token’s daily volume is up by 43.07% and $595.30 million.
Cardano Launches New Era Of Decentralized Governance
In other news, the Cardano network is set to commence a new era in decentralized governance, according to an announcement by the CEO of the Cardano Foundation, Frederick Gregaard. In an X post on April 18, Gregaard stated the full constitution for this change in government “is on the horizon,” with an interim constitution now going into effect.
According to the Cardano Foundation boss, the interim constitution emphasizes core network values such as transparency, openness, and responsible decision-making. It aims to grant each ADA holder an influence in determining the future of the Cardano ecosystem via an inclusive government in which all stakeholders are privileged to certain rights and responsibilities as listed in the constitution.
ADA trading at $0.4778 on the daily chart | Source: ADAUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
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