- Cardano (ADA), Avalanche (AVAX), and Polygon (MATIC) are showing strong market correlations, indicating potential synchronized price movements.
- On-chain data suggests that holders of these cryptocurrencies might anticipate further gains in the near future.
- According to IntoTheBlock, ADA has a correlation coefficient of 0.99 with AVAX and 0.98 with MATIC on a 60-day basis, suggesting nearly parallel market movements.
Cardano, Avalanche, and Polygon show strong market correlation, hinting at potential synchronized gains. Discover the latest insights and future outlook in our detailed analysis.
Cardano’s Market Correlation with AVAX and MATIC
Cardano (ADA) has shown a significant correlation with Avalanche (AVAX) and Polygon (MATIC), as per the latest data from IntoTheBlock. At press time, the correlation between ADA and AVAX stands at 0.99, while for MATIC, it is 0.98 on a 60-day basis. A correlation coefficient close to +1 suggests strong directional movement, which is evident in the case of Cardano and the other two cryptocurrencies. Currently, ADA’s price is $0.45, marking a 26.40% decrease on a Year-To-Date (YTD) basis.
Market Sentiment and Future Outlook
For Avalanche (AVAX), its value is $36.94, reflecting an 11.73% decrease within the same period. Polygon (MATIC) is trading at $0.71, marking a 29.21% slide. To determine if Cardano will continue to follow the same direction as AVAX and MATIC, we examined the sentiment around these projects. According to Santiment, the Weighted Sentiment metric for ADA is -1.613, for AVAX it is -1.018, and for MATIC it is -1.544. A negative sentiment reading indicates low confidence in the potential for price increases, suggesting that ADA, AVAX, and MATIC prices might decrease again.
Potential for a Bull Phase
Despite the negative sentiment, a highly negative sentiment could indicate a good period to accumulate before a major surge. To confirm this, we analyzed the Market Value to Realize Value (MVRV) ratio, which indicates whether a cryptocurrency is undervalued. At press time, Cardano’s 30-day MVRV ratio is -5.313%, meaning that if every ADA holder who accumulated within the last 30 days sold, they would incur an unrealized loss. For MATIC, the MVRV ratio is 1.608%. The decreasing ratios suggest that these tokens are undervalued in the context of the bull market.
Conclusion
In conclusion, the strong market correlation between Cardano, Avalanche, and Polygon indicates potential synchronized price movements. Despite the current negative sentiment, these cryptocurrencies show signs of being undervalued, suggesting a possible accumulation phase before a major surge. Should the prices begin to recover, ADA could rally back to $0.67, AVAX could move to $50.35, and MATIC could reach $1.06. Investors should keep a close eye on market developments and sentiment metrics to make informed decisions.
