Cardano [ADA] holders going long this week should read this

ambcrypto.com:

Cardano [ADA] is about to conclude the month on an overall bearish performance despite a promising start. Investors were optimistic that September would at least provide a bullish outcome, especially in light of major developments.

However, ADA did at least manage an 18% rally in the first 11 days of the month. It retraced since then and retested August lows. ADA traded at $0.43 at press time, which was close to its monthly low of $0.42. More importantly, this was also the same level that previously offered support.

Source: TradingView

ADA might bounce from the same short-term support if history repeats. Its press time performance reflected the low investors’ confidence. This also explained why it failed to achieve a noteworthy upside despite its latest major network upgrade.

The lack of investors’ confidence was reflected in ADA’s velocity which was at its lowest four-week levels at press time. This confirmed that ADA coins were less frequently traded in the last few days.

Source: Santiment

ADA’s 24-hour active addresses metric also demonstrated a similar outcome. The number of active addresses dropped drastically in the last few days. These observations were not unexpected considering ADA’s performance so far in 2022.

It is not all doom and gloom for the altcoin, because there was some bullish activity near the current support. ADA’s Market Value to Realized Value (MVRV) ratio bounced sharply in the last two days. This pointed towards the fact that there were some major purchases which stood in profit after a slight upside.

Source: Santiment

The MVRV ratio’s uptick also confirmed that there was still some demand near the current support. It might also provide some insights into what to expect moving forward. A likely outcome