Cardano (ADA) has experienced significant price gains in recent weeks, with its value rising by 55% in the past seven days. This increase has resulted in substantial unrealized gains for Cardano holders. However, as profit-taking intensifies, there may be a pullback in the short term. The market value to realized value (MVRV) ratio for Cardano is currently positive, indicating that the coin is overvalued. This could lead to investors cashing out and driving down the price. Additionally, the increase in daily transaction volume in profit suggests that more holders may be tempted to sell. Currently, 52% of Cardano addresses are profitable, while 41.3% sit on unrealized losses. If selling pressure increases, the price of Cardano may fall, potentially reaching support levels at $0.54 and $0.47. However, if holders continue to accumulate coins, the price could surpass $0.60 and potentially move towards its year-to-date high of $0.81.



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