Cardano price drops 10% in a week, but a bullish MVRV and double-bottom hint at a rebound to $3.10 as TRX overtakes ADA by market cap.
Tron (TRX) has surpassed Cardano (ADA) in the market capitalization list after Cardano fell 10% in just seven days.
The Market Value to Realized Value (MVRV) ratio indicates that Cardano price has reached an “opportunity zone” that might spur a comeback and potentially push gains above $3 despite its poor performance.
Bullish Pattern Indicates Cardano Price Drops But Recovery
Since the beginning of the month, the unfavorable trend that has been observed in the larger cryptocurrency market has not spared the price of Cardano.
ADA has lost over 10% of its value in just seven days; at the time of writing, it was trading at $0.64, down from $0.71.
Coinglass data shows that almost $12 million in ADA-long holdings have been wiped out over this period.
Despite the decline, a bullish double-bottom pattern is still active on the one-month chart.
Since 2021, this pattern has been developing, suggesting that Cardano’s ATH would be approaching soon.
Cardano experienced a sharp drop following this record high before rising again in early 2024.
The recovery was brief, though, as Cardano price fell to its second low in Q3 2024 before the next rally encountered support at the $0.80 neckline.
Due to Cardano’s inability to convert the $0.80 resistance into support, this double-bottom is vulnerable.
The key to a rally that raises the price of ADA to $3.10 will be closing above this resistance.
Technical indicators also show a mixed picture.
The RSI, which reflects uncertainty as neither buyers nor sellers have the upper hand, has stabilized at about 51 after experiencing a sharp dip earlier this month.
The bullish momentum is waning, as indicated by the bars of the AO histogram, which could postpone the double-bottom breakout surge.
The growing institutional interest in ADA is one of the elements that can entice purchasers to return to the market.
The CEO of the Cardano Foundation met with the CEO of Franklin Templeton, as CoinGape reported, and the encounter sparked rumors that the Cardano blockchain might be adopted.
The performance of the Cardano price may also be positively impacted if this occurs.
MVRV Ratio Initiates Purchase Signal
The 30-day MVRV ratio for Cardano has dropped to a level that frequently indicates a possible trend reversal from bearish to positive.
The ratio was -13% at the time of writing, meaning traders who made purchases within the previous 30 days were sitting on 13% in unrealized losses.
Even though such significant losses indicate a pessimistic view, historical patterns suggest that a deep negative in the MVRV has frequently signaled a local bottom.
Two months after the ratio dropped to -12%, as shown in the accompanying figure, Cardano price jumped by almost 270% in Q4 2024.
Shortly after a similar crash in February 2025, there was a 67% rally.
The one-month price chart’s double-bottom pattern might be confirmed if the MVRV records another bottom this time.
In conclusion, the price of Cardano has plummeted in recent weeks, and its poor performance has caused its market capitalization ranking to decline.
Buyers could intervene and support a breakout from resistance at the neckline of a double-bottom pattern, however, as the MVRV flashes a buy signal, boosting gains above $3.
