• Cardano price has declined by nearly 15% in the span of three days, bringing the altcoin close to March lows.
  • The MVRV ratio is close to tipping into the opportunity zone, which would mark a potential recovery for the asset.
  • Large-wallet holders command nearly 50% of all transactions, leaving recovery in the whales’ hands.

Cardano price took a critical hit on June 7 as the entire crypto market continues to suffer the impact of the regulatory crackdown against Binance and Coinbase. Amidst this chaos, the investors that bore the loss found an opportunity for recovery, but it does not sit in the hands of retail investors.

Cardano price dips again

Cardano price has observed a near 14% crash in the last three days as the market reeled in from the sudden bearishness observed. The altcoin is currently trading at $0.3226, still keeping above the March lows of $0.3043. To initiate recovery, ADA might need more from its investors than the market.

ADA/USD 1-day chart

ADA/USD 1-day chart

Accumulation stands to be one of the biggest triggers, and by the looks of it, ADA is approaching the point where a price recovery can be expected soon. The Market Value to Realized Value (MVRV) ratio is a metric that helps in gauging actual profitability vs. loss on the network. Generally, moments of depreciation arrive with the possibility of a trend reversal which is the case with Cardano as well.

At the moment, the indicator is hovering at the -8% mark, just above the threshold of -10%. Below this point, historically, the price has recovered as accumulation tends to take precedence for investors. This is known as the “opportunity zone,” and if ADA slips into it, it would be highly susceptible to reclaiming the losses endured.

Cardano MVRV ratio

Cardano MVRV ratio

But this will only take place at the hands of the large-wallet holders who are currently dominating the market in more ways than one. Beyond being the biggest cohorts, this bunch of investors also have the most contribution to the transaction volume recorded on-chain. 

Presently, nearly 45% of the entire transaction volume sits in the hands of the investors conducting transactions worth more than $10 million. Other than them, whales holding $100,000 to $10 million happen to be the second largest contributors, accounting for over 50% of the remaining volume.

Cardano transaction volume distribution

Cardano transaction volume distribution

Thus, most of the recovery is dependent on large-wallet investors taking part in accumulating huge volumes of ADA to pull the price back up.


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