Santiment: ADA undervalued as average investor loss hits 43%

As Cardano (ADA) investors face mounting losses, on-chain analytics firm Santiment suggests the asset has entered an undervalued zone, presenting a potential long-term buying opportunity. In a post on X, Santiment noted that the average return for addresses that have traded ADA over the past year is -43%. With the token having fallen approximately 71% since last September, its Market Value to Realized Value (MVRV) ratio is now negative. According to the firm, a negative average market return tends to increase the probability of a future rebound, as the MVRV-based return characteristicallly converges toward 0% over the long term.