ADA Price Faces Uncertainty as NVT Ratio Hits 7-Month High

In
This
Post:

• Cardano’s
  price
  could
  drop
  by
  10%
  if
  the
  upcoming
  Chang
  hard
  fork
  doesn’t
  go
  well.
• Traders
  have
  placed
  strong
  sell
  positions
  between
  $0.372
  and
  $0.4.
• The
  Network
  Value
  to
  Transactions
  (NVT)
  ratio
  has
  hit
  a
  7-month
  high,
  which
  could
  mean
  Cardano
  is
  overvalued.

Cardano’s
price
is
in
a
tough
spot.
The
upcoming
Chang
hard
fork
is
creating
uncertainty.
Some
on-chain
data
suggests
that
investors
are
hopeful,
but
trader
behavior
seems
more
cautious
and
bearish.

On-Chain
Metrics:

Data
from

Santiment
shows
the
NVT
ratio
has
reached
a
7-month
high.
Typically,
when
this
ratio
rises
and
the
price
drops,
it
signals
a
potential
overvaluation.

Despite
this,
data
from

IntoTheBlock
shows
that
large
investors,
known
as
“whales,”
have
been
buying
ADA
between
August
25
and
28,
even
as
the
price
fell.
This
suggests
that
big
investors
still
believe
in
Cardano’s
long-term
potential.

The
buying
from
whales
might
be
providing
some
support
for
the
price.
When
big
investors
accumulate,
it
can
help
stabilize
or
even
push
the
price
higher.
This
is
a
positive
sign
for
Cardano
in
the
long
run.

Technical
Analysis:

Despite
the
optimism
from
whales,
Cardano’s
price
has
fallen
below
the
50-day

exponential
moving
average
(EMA).
This
shows
that
bearish
pressure
is
strong.
The
price
found
some
support
around
$0.3550,
where
many
whales
seem
to
be
building
their
positions.
However,
the
market
shows
indecision,
with
small
price
movements
up
and
down.

The

Coinglass
7-day
Liquidation
Map
reveals
a
strong
sell
wall
between
$0.372
and
$0.4.
This
means
it
will
be
tough
for
the
price
to
move
above
this
range
without
significant
buying
pressure.

On
the
downside,
there
isn’t
much
buying
support
between
$0.348
and
$0.312.
If
the
price
falls
below
this
range,
it
could
drop
sharply,
possibly
below
$0.3.

Looking
Forward

For
Cardano
to
avoid
further
drops,
it
needs
to
break
above
the
$0.4
mark.
Positive
sentiment
from
large
investors
might
help,
but
short-term
traders,
who
aren’t
committed
to
holding
the
asset
long-term,
could
still
push
the
price
down.

The
success
of
the

Chang
hard
fork
will
be
critical.
If
it
goes
well,
it
could
boost
the
price.
But
if
there
are
problems,
a
10%
drop
is
likely.

In
summary,

Cardano
is
at
a
crossroads.
The
market
is
uncertain,
with
both
positive
and
negative
factors
in
play.
Investors
should
watch
the
Chang
hard
fork
closely
to
see
where
the
price
might
head
next.