Cardano Whales Ape In as Coin Flashes Buy Signal

Cardano's Market Value to Realized Value (MVRV) ratio — a key indicator of whether an asset is overvalued or undervalued—signals that the coin may be undervalued at its current market price.

Cardano’s price has shown little movement this week, remaining range-bound between resistance at $1.02 and support at $0.96. However, despite the limited price action, on-chain data reveals a buy signal emerging, indicating renewed interest from large investors.

According to the latest Santiment insights, ADA whales have been accumulating significant amounts of the coin recently. As of this writing, whale addresses holding 10 million to 100 million ADA have purchased a staggering $140 million worth of the coin in the past seven days.

Typically, such moves from whales indicate increased confidence in the asset’s near to short-term prospects. If retail traders follow the trend, Cardano’s price could experience significant upward momentum in the coming weeks.

Moreover, ADA’s seven-day and 30-day Market Value to Realized Value (MVRV) ratios signal that the coin may be undervalued at its current market price. As of this writing, the coin’s seven-day and 30-day MVRV ratios are -2.88% and -0.98%, respectively.

When an asset’s MVRV ratio is positive, its market value is higher than the realized value, suggesting it is overvalued. On the other hand, as is the case with ADA, when it is negative, the asset’s market value is lower than its realized value, indicating that it is undervalued. This means the coin is being traded below its historical acquisition cost and may be due for a rebound. Hence, market participants looking to “buy low and sell high” may begin to accumulate the altcoin.