Identifying if you can use Cardano to 3x your return on investments
Cardano’s price has been in a league of its own, having rallied when most of the market was keeping mum. It continued to rally during the bull run as well. This led to an explosive surge in its price, one which pushed it from $0.017 in March 2020 to $3.11 in September 2021.
Due to this exceptional quality, the altcoin needs to be observed closely, from technical and on-chain perspectives.
Cardano’s price has rallied by a whopping 17,600% in less than a year and a half, hitting an all-time high of $3.11. As impressive as this uptrend is, investors who purchased ADA in the second half of 2021 and are still holding are underwater.
In total, ADA has dropped by roughly 76% from its peak. In effect, at press time, it was hovering above a stable support level at $0.843.
As mentioned in a previous article, ADA has been walking on eggshells and is at a make-or-break point in its journey. However, what’s interesting is that from a long-term perspective, ADA has a lot to offer for patient investors.
As seen in the Volume Profile indicator, a breakdown of the $0.843 barrier could push ADA down to $0.397. For a long-term holder, these are important points of accumulation. Assuming Cardano’s price crashes to roughly $0.40, investors can buy a ton of ADA at a discount or Dollar-Cost Average (DCA) any dips that occur from $0.843 to $0.40.
From the potential bottom at $0.40, the investor stands to gain a whopping 665% when ADA revisits its all-time high. This move would roughly represent a 7x return on the initial investment.
Source: ADA/USDT on TradingView
The 365-day Market Value to Realized Value (MVRV) model shows that 46% of ADA holders who purchased the token over the past year are at loss.
This indicator is used to assess the average
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