Cardano remains one of worst performing assets on market and now becomes most undervalued in three years
It is no secret that Cardano is one of the least profitable assets in the cryptocurrency market. While this may not be a problem for some investors who prefer the fundamental value of the project rather than its performance among traders, a devaluation of ADA could change the situation in the near future.
According to the MVRV-Z score, Cardano is sitting at the lowest relative position compared to its realized value since 2019, which makes it the most undervalued it has been in the last 45 months. The indicator measures the valuation of an asset based on average trader losses.
The last time the MVRV-Z indicator flashed, the price of ADA doubled in just three months. Taking into account all the underlying factors today, Cardano could repeat the success we saw a few years back. However, there are no positives in the technical overview.
Horrendous price performance
In the last 30 days, Cardano lost almost 30% of its value, becoming one of the weakest assets on the market despite being oversold prior to it. Such a rapid drop in value is hard to explain, considering the lack of any happening around the coin except the rapid growth of the Cardano ecosystem.
According to GitHub, Cardano is one of the most actively developing cryptocurrencies in the market, which is confirmed by the variety of new releases such as DeFi Solutions and NFT Marketplace.
However, the project’s growth is not something cryptocurrency investors seem to value today, considering ADA’s poor short- and long-term performance on the market. Since 2021, ADA holders have not seen an uptrend. In order to get back to the pre-ATH values of 2021, Cardano has to go through a 780% rally.
