Cardano (ADA) at 7th place by market capitalization and Dogecoin (DOGE) at 12th place are undervalued according to an important metric. In other words, it is claimed that these two popular altcoin projects are currently undervalued. The metric on which these claims are built can be considered successful based on previous data as it accurately predicts the latest XRP price rise.
Are Cardano and Dogecoin “undervalued”?
Popular altcoin projects Cardano and Dogecoin are currently “undervalued” according to this metric. According to the Santiment MVRV indicator released by a crypto analyst, the top cryptocurrencies Cardano and Dogecoin are currently looking “undervalued” at recent prices.
At the time of this writing, ADA was trading at $1.20, while Dogecoin was trading at $0.159 at the time of writing. MVRV, or Realized Value at Market Cap, is a ratio that allows cryptocurrency investors to fairly determine the price of a particular asset. MVRV is used as a standalone metric to identify market highs and lows. The lower the MVRV ratio, the higher the probability of upward price action, as this key index calculates the average profit or loss of previous addresses purchased.
Cardano is a cryptocurrency network and open source project that aims to run a public blockchain platform for smart contracts. Recently, it has received a lot of praise as well as some criticism. For Cardano, however, the MVRV 365D, which measures the profit or loss of addresses that have acquired ADA in the last 365 days, shows that ADA holders sit at an average loss of -26. This on-chain metric is currently hovering at -36%. The same metric phenomenon also shows that the meme coin, Dogecoin, is sitting in the “opportunity zone”.
It is a well-known fact that large cryptocurrency holders, also known as whales, choose “bloodbath” periods to grow their holdings. This practice, which is frequently repeated during the correction and consolidation periods, seems to have been repeated by ADA token enthusiast whales, according to the information received. According to WhaleStats data, Cardano has made a comeback among the top 10 tokens purchased by BSC whales.