Cardano (ADA) continues to face bearish headwinds after several failed recovery attempts, but the recent price pullback may be opening a strategic buying opportunity. With ADA entering a critical accumulation zone, investor interest appears to be returning, suggesting a potential short-term rebound.
On-chain data reveals that Cardano’s Market Value to Realized Value (MVRV) ratio is currently in the “opportunity zone,” ranging between -9% and -19%. This indicates that many ADA holders are sitting on unrealized losses — a condition that has historically marked local market bottoms. When the majority of investors hold at a loss, selling pressure tends to slow, paving the way for renewed accumulation and potential price stability.
This accumulation trend could signal a shift in sentiment as traders begin buying at lower prices. As selling weakens and demand builds, ADA may gain the momentum needed to reverse its downward trend. Supporting this outlook, the Chaikin Money Flow (CMF) indicator shows consistent inflows over recent days, confirming positive capital movement into Cardano. The CMF remains above the zero line, reflecting rising investor confidence and a possible start of a recovery phase.
At press time, ADA trades at $0.641, maintaining support above $0.623 while facing resistance at $0.661 — a level that has repeatedly rejected upward moves. If bullish momentum continues, Cardano could break this barrier and target $0.696. However, a sustained move above $0.754 would confirm a stronger market recovery and renewed optimism among investors.
With improving on-chain signals and capital inflows, Cardano appears poised for a potential rebound, making this an attractive accumulation phase for investors monitoring ADA’s next move.
Comment 0