Cardano's (ADA) price has recently declined, nearing levels historically seen as a bottom. This drop follows the Chang hard fork, a highly anticipated event. Cardano's founder, Charles Hoskinson, has announced further upgrades, named Chang+1, set to occur within 90 days.
Hoskinson stated that Cardano is in a bootstrap phase, with Dreps being registered and a new tripartite government expected post-upgrade. On-chain data from Santiment indicates ADA's Market Value to Realized Value (MVRV) ratio is deep in negative territory, suggesting low profitability and a potential price bottom.
The current 30-day MVRV ratio is at -22.86%, while the seven-day ratio is at -9.80%. This scenario points to investors likely holding due to unrealized losses, with the expectation of a price rebound.
Historically, ADA hits bottom when the 30-day MVRV ratio is between -16% and -27%. If this trend continues, a notable bounce may be near. Currently, ADA trades at $0.31, showing a bullish 'falling wedge' technical pattern indicating a potential trend reversal.
The Relative Strength Index (RSI) of ADA is below 30.00, indicating oversold conditions and a possible rebound. If buyers step in, ADA's price could reach $0.35. However, if Bitcoin's market performance remains weak, ADA might drop further to $0.30.
