Cardano's (ADA) price has been struggling to recover mainly due to broader market conditions. Investors are calling for a price rise to save the altcoin from heavy selling.
Recently, Cardano's price fell after being unable to break through the $0.40 resistance, partly due to slight selling once the coin entered the danger zone of the Market Value to Realized Value (MVRV) ratio. The MVRV ratio, which assesses investor profit and loss, showed a decrease from 11.4% to 5.4% in 48 hours.
The altcoin historically corrects when the MVRV ranges between 8% and 18%. Positive investor demand has helped Cardano deflect heavy selling pressure, indicated by a positive funding rate in the derivatives market.
Sustained investor interest saw long contracts dominating short contracts, suggesting optimism about ADA's future. The altcoin's price has followed a pattern of decline, sharp recovery, then further decline since February.
If ADA fails to break the $0.40 resistance, its price could drop to $0.34. However, should investor demand overpower bearish trends, the price could breach $0.40 and potentially reach $0.44, invalidating the bearish outlook.
