Cardano (ADA) is significantly undervalued, claims an On-Chain’s signals

Santiment, a crypto analytics outfit, on-chain signals for Cardano revealed that ADA is currently trading at a considerable discount.

Santiment examines Cardano‘s MVRV Z-Score, which compares an asset’s total market capitalization to its total realized market capitalization.

📊 #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

Historically, a low Z-Score indicates that an asset is undervalued. According to Santiment, ADA’s MVRV Z-Score is at its lowest point since January 2019.

According to the analytics group, the global cryptocurrency market is displaying symptoms of capitulation, with many traders closing out positions at a loss. According to Santiment, the concession could spark a market resurgence.

While many crypto currencies are showing indications of capitulation, Santiment has also seen a significant acquisition of altcoins by wealthy investors.

Last Monday, the firm announced that major investors in the decentralized oracle network Chainlink had amassed more than $312 million in LINK since the start of the 2022 bear market.

TagsCardanoCrypto