Last updated:
Junior Content Creator
Harvey Hunter
Junior Content Creator
Harvey Hunter
Share
Why Trust Cryptonews
Over the past 24 hours, the Cardano price has mounted a recovery, now down just 0.06% after a significant decline.
Meanwhile, an overlooked on-chain metric recently hit a new high, alluding to a potential rally.
This negligible price action holds Cardano at a 2.79% loss since last Friday. Although notable, it is among the least affected, with other notable altcoins experiencing more severe losses.
Indeed, with today’s recovery, trader interest in Cardano appears to be at a high. The altcoin’s trading volume has surged by 31.08% to $277.66 million over the past 24 hours.
Cardano Price “Undervalued” as Fundamentals Soar
In an August 13th X Post, blockchain analytics firm IntoTheBlock revealed a notable milestone for Cardano.
The percentage of Cardano tokens held by long-term holders (LTHs), those who have held the asset for over a year, has reached an all-time high.
Nearly 40% of Cardano’s supply is now held by LTHs, spread across 3.2 million addresses.
Something IntoTheBlock cited as particularly bullish, demonstrating a “significant level of confidence from its holders.”
This confidence persists despite Cardano’s underperformance this cycle. It remains the worst-performing asset among the top ten cryptos by market cap, posting a year-to-date loss of over 43%.
Remarkably, only 18% of holders (784,110 wallets) are currently profitable.
Despite these challenges, Cardano’s long-term holders have been increasing their positions rather than selling, highlighting their belief in the token’s long-term potential.
IntoTheBlock highlighted that Cardano settles approximately $7.2 billion daily in on-chain volume – a figure that surpasses many other networks.
This positions Cardano at an “impressively low [Network Value / Daily Transaction Volume (NVT)] ratio of just 2.62, which could indicate that $ADA is undervalued at its current price.”
Cardano Price Analysis – Is a correction Due?
Notably, Cardano currently remains bound within a narrowly expanding triangle pattern, characterized by gradually increasing volatility as the asset navigates a period of fear, uncertainty, and doubt (FUD).
The prolonged persistence of this pattern suggests that market participants may be awaiting a significant catalyst, whether it be a news event or a shift in fundamentals, before committing to a definitive price direction.
Particularly, IntoTheBlock noted that Cardano’s adoption has stagnated this current cycle. The total number of Cardano addresses with a balance has remained around 4.45 million for over a year.
However, this stagnation does not preclude significant price movement in the near term. In fact, some technical indicators present a bullish case for the Cardano price.
Most notably, the MACD line (blue) is currently converging towards the signal line (orange) in an uptrend, an indicator of a potential shift in momentum from bearish to bullish.
Meanwhile, the dots that make up the Parabolic Stop and Reverse (SAR) indicator have been below the Cardano price since August 9. This serves as an uptrend, with the SAR providing support, suggesting that the price is likely to continue rising.
If Cardano can maintain this momentum, the immediate resistance at $0.3450 becomes the next key barrier. A successful recovery of this level could set the stage for retesting the pattern’s upper resistance.
However, traders should watch for a successful break above the stubborn resistance provided by the 200DMA (blue) as a key indicator of a breakout from the pattern. This could pave the way for Cardano to target previous highs and potentially embark on a more sustained rally.
Low-Cap Meme Coin Offering High Gains Potential
Although the Cardano ecosystem remains strong in its fundamentals, the hurdles presented by adoption are unlikely to be resolved in the near term.
Therefore, it is no surprise that traders are diversifying into more permission opportunities like PlayDoge ($PLAY), a new low-cap meme coin capturing the attention of meme fans, gamers, and crypto enthusiasts alike.
The meme coin market is over-saturated with Shiba Inu-themed coins boasting little to no real utility. In contrast, PlayDoge stands out by focusing on gaming utility.
It transforms the iconic Doge meme into a play-to-earn Tamagotchi-style virtual pet, tapping into 90s nostalgia. This unique approach may credit $PLAY’s recent success, raising over $6M in its presale so far.
PlayDoge will enable players to earn rewards by nurturing their pets and taking them on adventurous journeys. Timely feeding, training, and sleep all contribute to the rewards earned by the conscientious pet owner.
At a temporary fixed presale price of $0.00529, those who act quickly stand to benefit the most. Investors are currently earning a notable 76% APY. This presents a valuable passive income opportunity, even amidst recent market volatility.
Keep in touch with project developments by joining the community on X and Telegram.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
