Cardano (ADA/USD) is significantly undervalued. That’s according to data by crypto analytics Santiment. ADA trades at a low of $0.36 after a bearish market the past one week.
Using Cardano’s MVRV Z-Score, Santiment data highlights ADA’s low valuation. Accordingly, the token trades at its lowest level to its realised value. Since the beginning of 2019. A low Z-score signifies an undervalued asset. Is the undervaluation a sign of a market rebound for ADA?
Santiment suggests that ADA doubled in value in just 3 months, the last time its MVRV Z-Score reached low levels. That comes when the analytics firm also reports increasing capitulation across the crypto market. Capitulation is characterised by traders closing their positions at a loss. The situation occurs before the market rebounds.
The latest data occurs even as Cardano remains under pressure. However, the token has recovered some losses, adding an intraday 4.80% on Monday. The gains come barely 24 hours after FTX CEO Sam Bankman-Fried assured members of a spot ADA on the exchange. ADA is the only token in the top 25 on the exchange lacking a spot listing.
AADA is approaching the 23.6% retracement after the latest recoveries
Source &- TradingView
From the technical outlook, ADA is initiating a recovery above the $0.32 zone. From the Fibonacci retracement, the cryptocurrency’s swing high lies at $0.5109 and a swing low of $0.3296. The possible retracement levels are $0.37 (23.6%), $0.3988 (38.2%), $0.42 (50%), $0.44 (61.8%).
The key retracement could be at the Fib levels shown above.
Should you buy ADA?
While recovery at $0.32 is a good sign for ADA, we have yet to confirm bullish momentum. The cryptocurrency remains below a crucial support-turned-resistance at $0.42. The level coincides with the 50% or 61.8% retracement.&
Again, the cryptocurrency market outlook remains less convincing. Thus, we might stay in a bear market longer. Most cryptocurrencies are mixed.
Nonetheless, ADA remains attractive for investors seeking a cryptocurrency with underlying fundamental value. Potentially, the return of a bull market would welcome a lasting rally for depressed ADA.&
Where to buy ADA
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
The post ADA is undervalued according to insights data. Should you buy it? appeared first on CoinJournal.
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