According to on-chain analytics firm Santiment, the risk of further declines in Cardano (ADA) quotes is now much lower than that of Ethereum (ETH) or BNB. This thesis about Cardano builds on the MVRV metric.
As the ratio of market capitalization to realized capitalization, MVRV is used to understand when price is above or below fair value and to evaluate profitability. Therefore, according to Santiment, the ADA's MVRV is currently in such a low region that the risk of further declines is extremely small. This is especially true for ETH and BNB funds, which have not yet dropped as much as the MVRV rate.
“30-day trading returns continue to point to medium-term losses for the average portfolio. The more MVRV an asset is in negative territory, the lower the further downside risk based on backtesting. ADA compared to other caps. pretty low."
The ADA price has been fluctuating for a week after the decline that started on August 17 and ended on August 19. If you look at the picture in the context of the last four months, you can see how prices have frozen between $0.4-0.6. On the one hand, there is still room for bearish and it is not good to open positions in the middle of the range. On the other hand, ADA grew more than 30% from $0.465, which was roughly the same level at the beginning of June. Perhaps the best solution is not to follow the price of Cardano right now, but to follow the Vasil hard fork event, which in a lucky scenario could push the prices of the cryptocurrency up.
As a decentralized platform, Cardano (ADA) enables complex programmable value transfers to occur in a secure and scalable manner. The development of the platform, founded by Charles Hoskinson, began in 2015. It raised nearly $60 million in an ICO in 2017 before it was launched. Hoskinson is also known as one of the founders of Ethereum.