Is Cardano ($ADA ) Facing a Price Correction? 📉
Cardano (ADA) has seen a stunning 180% price surge over the past 30 days, but some key metrics suggest it might be reaching overvalued territory. 🚨 Historical data and on-chain indicators raise concerns that ADA could face a price correction before moving higher.
The MVRV Long/Short Difference has spiked to 52.71%, signaling that long-term holders are at risk of losing unrealized profits. When this metric peaks, ADA's price has historically been close to overvalued levels, hinting at a potential pullback. Additionally, the NVT Ratio has surged, indicating that ADA's market cap is growing faster than the value transacted on the network. This could signal overpricing. 📊
From a technical standpoint, the Bollinger Bands show increased volatility, and ADA's price is nearing the upper band at $1.30, which suggests it’s in overbought territory. If the trend continues, ADA might dip to around $0.92. However, strong buying pressure could push the price above $1.40. 🔮
Investors should stay cautious, as Cardano may experience a correction before it can rally again. 📉
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