A leading crypto analyst has made a shocking revelation about the actual value of both Cardano and Dogecoin.
The crypto analyst, Ali Martinez, has posted an MVRV indicator showing how Cardano and Dogecoin are undervalued following recent market prices where the ADA traded at $1.20, with Dogecoin trading at $0.159 at the time of writing.
The Market Valued to Realized Value (MVRV) is an indicator that uses a ratio scale to enable cryptocurrency traders to determine the fairness of a given asset’s price. The MVRV is also used as a standalone metric to ascertain cryptos’ top and bottom places in the market. The efficacy of the metric is not in doubt given the accurate prediction it gave following the latest price surge of the XRP.
The announcement means that the previous market valuation of Cardano and Dogecoin has not been accurate if their recent popularity and acceptance are to be considered. How this proves to be the correct permutation is open to debate by stakeholders involved in the transaction of the coins.
Simply put, the lower the ratio displayed by the MVRV, the higher the upward movement of the price. The upward trend makes it easy to predict the possibility of a price surge correctly. Any address that makes a purchase has its profit and loss automatically calculated by the key index.
Speaking of Cardano’s ADA, the 365D MVRV ratio that calculates the gain or loss of addresses of those who bought the ADA token last year has indicated that holders of ADA wallets have experienced a -26% loss on average. The current metric reading is -36% for Dogecoin, showing that Dogecoin now hovers in what is known as the “opportunity zone”.
Whales Thirsty For More
Whales use periods like this to take a massive plunge into purchasing tokens to accumulate and consolidate their choice for discounted amounts. The data provided by WhaleStats shows Cardano making a return to the chart among the most sought-after wallets by whales. The revelation became public after the top BNB whale bought a massive amount of ADA tokens, estimated to be five million.
The same WhaleStats report shows a high ranking BNB whale, who sits atop the fifth place amongst the 1,000 whales, has been tracked to reveal a whopping $5,950,000 worth of ADA tokens in his portfolio. Another top BNB whale ranked at 75th by WhaleStats has added $1,471 326 DOGE to his already growing portfolio.
However, no matter their preferences, whales are dedicated to finding opportunities to hold as many tokens as they can get to purchase; after all, the chance to acquire them was made available by willing sellers.
Interestingly, token-thirsty whales’ continuous rush for both cryptocurrencies comes when the said coins are reportedly undervalued in the crypto marketplace. Notwithstanding the gains made by those involved in the trading, it will be more interesting to see how other players will receive the news of their undervaluation and the reactions it is set to generate.