Cardano (ADA) wallets active over the past year are sitting on an average loss of 43% according to on-chain analytics firm Santiment, a metric that historically has preceded price recoveries in the cryptocurrency market.
The depressed Mean Value/Realized Value (MVRV) ratio—which measures the average profit or loss of all holders who moved their tokens within the measured timeframe—has fallen into territory that technical analysts typically associate with capitulation and accumulation phases. When long-term holders are deeply underwater on their positions, it often signals that weak hands have already exited and remaining holders are unlikely to sell at further losses.
Santiment's analysis suggests ADA has entered what market participants classify as a buying zone, though historical MVRV extremes do not guarantee immediate price appreciation. The metric serves as a contrarian indicator: extreme negative MVRV readings have preceded some of the largest rallies in Cardano's history, but timing such reversals remains notoriously difficult for traders.