What’s in store for Cardano?

Cardano (ADA) has seen an impressive rally over the past two weeks, climbing to eight-month highs. With the price hovering near $0.80, the altcoin has attracted the attention of investors.

However, mixed signals point to an uncertain path ahead, with both bullish and bearish prospects on the horizon.

Cardano may notice a reversal.

The MVRV ratio for Cardano indicates that the cryptocurrency is currently overvalued, which has raised concerns among market participants. Historically, a 30-day MVRV ratio between 11% and 20% has been considered the danger zone for profit accumulation.

Currently, the MVRV ratio has risen to an alarming 37%, far exceeding this limit. This indicates that ADA holders may start realizing the profits soon, which may lead to a price drop.

Although it concerns MVRV levels, Cardano's recent rally has been supported by strong investor interest. Profit taking, however, can have a significant impact on performance if sales activity is increasing. The market is watching these dynamics closely to gauge whether the rally has the strength to continue or whether it will soon reverse.

Whaling has played a vital role in sustaining Cardano's latest operation. Transaction volume above $100,000 hit an eight-month high, totaling $28 billion.

The presence of whales in the market provides a layer of stability for the ADA in the upward direction. These large-scale investors may continue to influence price movements, especially if selling pressure occurs.

While whales have so far supported the ADA rally, their activism can serve as a double-edged sword. If these major players decide to unload their holdings, it could lead to a major downturn. On the contrary, continued whaling activity can strengthen market confidence, reducing potential losses.

ADA Price Prediction: Walking High Level

Cardano is currently near $0.80, below the critical resistance level of $0.81. In the past two weeks, the altcoin has increased by 137%, regaining price levels not seen since March. However, a breach of $0.81 remains challenging given the mixed market signals.

The chance of ADA reaching $1.00 seems slim at present as the rally shows signs of strengthening. If the resistance at $0.81 is strong, the cryptocurrency may stabilize below this level in the near future.

On the downside, if selling activity strengthens, Cardano could retreat to $0.71. Any further decline from this point would destroy the bullish-neutral outlook, which could take the price to $0.66.