Cardano (ADA) is a big favorite of many crypto investors. However, the rate of ADA has not been going very well for some time. However, according to crypto analysis firm sentiment, ADA’s current price is not a good representation of its value. The researchers state that ADA is severely undervalued and that it could just double in price in the next three months. Santiment came to the conclusion that ADA is undervalued by looking at the so-called market value to realized value (MVRV) ratio. According to Santiment, this is an excellent way to determine whether the price of a token also matches the underlying fair value. “While not without its drawbacks, the metric provides an easy way to measure whether a particular currency is currently overvalued or undervalued, and the likelihood of an upcoming trend break.” Cardano is clearly undervalued today, according to Santiment. At the moment, ADA’S MVRV ratio is at its lowest point since January 2019. In addition, Santiment indicates that the last time this ratio was so massively low, the price of ADA doubled in price in the three months that followed. ? #Cardano now sits at its lowest relative position compared to its realized value since Jan, 2019. This is a sign of undervaluation based on average trader losses. $ADA's price doubled the following 3 months the last time its MVRV Z-Score hit this level. https://t.co/D8Bwk2GWEB pic.twitter.com/gnOuGVqqOq — Santiment (@santimentfeed) October 22, 2022 Although the past obviously does not guarantee price movements in the future, it is clearly a bullish signal for ADA, according to Santiment. Perhaps after months of underperformance, the course can finally start a rally again? At the time of writing, ADA is trading at a price of just over $0.35. Compared to the all-time high in September of the previous year, that’s a drop of no less than 89%. On Twitter we asked our customers what they expect from the ADA rate? Are we going to see another ADA price above $0.70 before the end of 2022? Or will ADA just sink further? Let us know what you think in the poll below.
