Key Takeaways:
- Santiment stated that a kaey on-chain indicator forecasts a 200% increase for ADA prices.
- Meanwhile, ADA began a minor uptrend.
PATNA (CoinChapter.com) — Cardano’s native token, ADA, might be looking at gains of up to 200% within the next three months if historical price action after a particular on-chain indicator reached low levels repeats, per a tweet from crypto analytics firm Santiment.
The MVRV (Market Value to Realized Value) indicator helps analysts study investor behavior as price moves away from or toward their cost basis. MVRV is defined as the asset’s market capitalization divided by realized capitalization.
In simple words, the indicator helps gauge if a crypto token is currently over or undervalued. Santiment’s tweet on Oct 22 stated that the ADAUSD pair was “at its lowest relative position” to its realized value since January 2019, indicating the undervalued state of the Cardano token.
Additionally, the post mentioned that ADA prices gained nearly 200%, within three months, the last time the MVRV ratio was this low. Moreover, several analysts remain bullish on the ADA price prospects.
ADayment Mode For Telemedicine App
Citaldoc, a telemedicine platform, shared that it had started testing ADA as a payment method for its services.
The firm made a test transaction of 10,000 ADA, for which the Cardano network charged 0.0017% in transaction fees. Citaldoc executives highlighted that cryptocurrency payments would help them provide services to potential and existing clients, especially in Latin American markets.
With such tie-ups, Cardano continues establishing use cases for its ADA and stablecoin asset, Djed (DJED) tokens.
ADA Price Bounces Off Trendline Support
Meanwhile, ADA’s price rebounded off multi-month trendline support, which the token’s prices have tested nearly five times in 2022. The token started the weekend after closing 2.65% above Oct 21’s open price of $0.34.
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ADA price continued to rise on Saturday, with bulls aggressively defending the trendline support. Moreover, a key reason behind Cardano price reversing its downtrend could be ADA’s RSI becoming oversold.
Traders often consider an oversold RSI an indicator of a bullish trend reversal. Since ADA’s RSI continues to be in the oversold region, with a value of 29.15 on the daily charts, bulls would hope ADA price action would attract buyers to the market.
Once that happens, the Cardano token might target resistance near $0.37. Moreover, a strong buying action might result in ADA’s price moving above its 20-day EMA (red wave) to challenge resistance near $0.39 before corrections pare gains.
Conversely, a downtrend would result in ADA price falling to test support from its descending trendline near $0.334. Furthermore, a marketwide sell-off might result in the Cardano token falling to $0.3 before recovering.
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