Signs point to a potential rebound

Cardano (ADA) has shown a steady decline in price since the beginning of December, reaching a monthly low of $0.86. This decline has ADA investors expecting a bad start to the new year.

However, market signals suggest a buying opportunity for those willing to take a long-term view.

Cardano investors have a chance.

Cardano's MVRV (Market Value to Real Value) ratio indicates a buying opportunity. The scale currently falls in the -13% to -26% range, an area historically considered the zone of accumulation for ADA. When the MVRV ratio holds this range, the altcoin will rebound more often, giving investors a higher chance of recovery.

Stocking Cardano at these levels could yield positive returns, especially since the altcoin has shown resilience in similar situations in the past. While current sentiment is cautious, the MVRV zone suggests ADA is undervalued, making it an attractive option for strategic investors.

Cardano's macro momentum, however, presents challenges. The net value to transactions (NVT) ratio is at a 22-month high, indicating a losing trend. A high NVT ratio indicates that the network's valuation is significantly expanding its trading activity, indicating weak interest in the chain and declining investor interest.

This gap shows that while Cardano's market cap is high, real-world usage and adoption is lagging. Investors should consider this volatility when evaluating an altcoin's potential for short-term recovery or long-term growth.

ADA Price Prediction: Getting Support

Cardano's price is currently at a monthly low of $0.86, which has recently broken through the $0.87 support level. This price point, combined with mixed signals from market and macro indicators, leaves ADA in a precarious position.

In the near-term, ADA could consolidate between $0.87 and $1.00, provided there are no major bullish or bearish signs. This region could serve as a stabilization zone for the altcoin as investors wait for stronger signals from the broader crypto market.

However, a failure to recover $0.87 as support could push Cardano to the next support level of $0.77. Such a drop would reinforce bearish sentiment and delay any recovery, highlighting the importance of this critical price point to ADA's near-term direction.