Cardano (ADA) Price Outlook: NVT Ratio Soars, BTC Dominance Climbs, But Key Support Zone Holds

Cardano NVT ratio soared to its highest point since June, raising concerns about ADA's price stability as on-chain activity slowed. This signal typically suggests potential overvaluation.

While the Cardano price has been struggling recently, the NVT rate has reached the highest level since June as ADA's on-chain activity has slowed, leading to concerns about ADA's price stability. This signal often indicates potential overvaluation, making ADA's recent struggles noteworthy.

As Cardano's price increase outpaces network activity, ADA investors are wondering whether the price will rise again or fall further. Without a significant increase in participation on the blockchain, ADA may struggle to maintain current price levels.

It Holds a Significant Support Level, But Can It Maintain?

According to the latest data, ADA has maintained a significant support level on the weekly time frame for more than 100 weeks. This period shows ADA consistently remaining within a support zone on the higher time frame (HTF). Positioned at the base of an ascending channel structure, ADA's current chart setup offers both a hopeful and cautious outlook.

If ADA rises to the top of this channel, the move could result in more than 0 profits. This price channel indicates a “sleeping giant” opportunity, indicating that Cardano could experience a large price increase if it breaks through important resistance levels.

Traders who follow ADA closely have observed that it remains in a low-volume zone in the visible range profile and is also supported by its position at the bottom of the channel. This combination shows that ADA can explode under the right conditions.

If ADA on the 6-hour chart pushes and flips this structure, it could open the door to positive long entries with potential gains towards the target levels indicated on the chart. However, this optimistic scenario also faced limitations as ADA continued to show bearish trends with constant downward price movements on the daily chart.

The contrast between signals on the short-term and higher timeframe reflects ADA's complex price outlook and highlights the need for caution despite the potential.

ADA/BTC Valuation Analysis

Crypto analyst Benjamin Cowen accurately predicted ADA's recent struggles based on Bitcoin's performance. Cowen is known for his bearish view on ADA since August 2023 and predicted that ADA would fall to 400 sat against Bitcoin and its strength would decrease.

Initially many traders rejected his theory, but Cowen's analysis proved correct as ADA underperformed Bitcoin as BTC dominance rose and is now approaching `. With Bitcoin dominance increasing, the possibility of further downward pressure on ADA remains.

If Bitcoin continues its uptrend, especially as it tests new all-time highs, ADA, like altcoins, may face further challenges until Bitcoin stabilizes. However, this expected decline could set ADA up for a potentially explosive run if Bitcoin dominance finally falls.

ADA's current price levels offer an attractive entry point for long-term investors who believe in Cardano's future. The prospect of a larger rally will depend on positive changes in the broader market. Bitcoin needs to break out of $80,000 to ease the pressure on altcoins and allow ADA to gain momentum.

What to Expect from Cardano Price

Cardano's position in the market remains an interesting point. Some traders see ADA's current lows as an opportunity to accumulate. As the dynamics of the crypto market evolve, Cardano's technical setup shows that patience can reward investors who are ready for a longer-term hold.

ADA could be revived if Bitcoin dominance loosens and broader altcoin interest increases. This potential makes ADA the ultimate

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