Cardano (ADA)It might be worthwhile to keep an eye on. A metric suggests that the cryptocurrency is undervalued.
The “percentage supply in profit” metric is a key indicator that ADA has been undervalued. Calculating the percentage of supply profit involves comparing each crypto unit’s acquisition price to its current value and calculating what proportion of supply currently is in profit.
A high ratio of supply to profit usually means that most holders bought the asset for a lower price. These ratios may skyrocket in bull markets. For example, between October 2023 and March 2024. A surge of these ratios is often correlated to indicators that are overbought. The supply-in profit percentage indicator works best when combined with other metrics such as MVRV and whale accumulation.
The On-Chain Analytics firm SantimentIn a tweet sent recently, he shared that the percentages of supply in profit for Bitcoin, Ethereum, XRP Cardano Dogecoin Chainlink were 89.9% 84% 77% 51.9% 76.7% 78.2% respectively.
Calculating the percentage of profit in supply is done by comparing each unit’s acquisition price. #crypto Then, compare the current price of each item to determine what percentage is in profit.
When an asset has a large ratio of profit ,… pic.twitter.com/oRzTABgznh
Santiment Feed (@santimentfeed April 26, 2024 Santiment suggests keeping an eye out for cryptocurrencies that have a lower end supply of profits. These can indicate undervaluation in comparison to other markets. Cardano is one example, as it has a smaller supply percentage than other major cryptos.
This percentage indicates that 51.9% (or ADA) is in profit. It could be a sign of upcoming price recovery for Cardano.
As of the date this article was written, Cardano In the past seven days, Cardano has fallen 6.52% and 3% respectively. Cardano has also fallen 85.38% off of its previous high. The ATH was $3.10, achieved Sept. 2, 2020.
Latest analysis by On-Chain Analytics firm TheBlock ADA is “distinct” from other Layer-1 networks with 35% holders making a profit. It is not clear if this represents an opportunity, or a warning.