- Cardano's price rebound after handling $ 0.64 low on May 6.
- The custom risk model shows Cardano at the “moderate buy” level of 37.
- On-chain metrics show the growing network activity with 11.99% more active address.
Cardano price action has changed dramatically over the past week, with recent movements pointing to a potential change in market sentiment. After starting the week around $ 0.70, ADA sank to a local low near $ 0.64 on May 6 before presenting a recovery towards $ 0.72 on May 8.
The token posted 8% gain in the last 24 hours. While these short -term moves show a positive momentum, a new risk assessment model suggests a true Cardano Bull cycle may be in its earliest stages.
Cardano's risk model indicates a desirable entry zone
Crypto Capital Venture founder Dan Gampardello recently applied A custom risk model to assess current conditions in the ADA market. This review suggests that the long -term cardano's risk mark is currently 37, categorized as a “moderate purchase” under the model.
Risk levels are ranked by the model from low to high. The early stages of the market cycle are usually represented by the lower level. For the comparison, the risk level was in the 50s and 60s during Cardano's Bull was running in 2017–2018 and 2020–2021, respectively, seeing well -known price increases.
Over the past two bull cycles, the ADA risk level began in the 30s, remained constant for a while, and then increased very fast as the interests gained momentum. The token exceeded the $ 1 in the 2017 cycle and reached properly above $ 3 in 2021.
Today, ADA costs $ 0.71, 77% less than 2021 high $ 3.09. This price and a medium risk mark are interpreted by Gampardello as a purchase opportunity. He believes the Cardano Bull market is still in the early stages and is about to finish.
The analyst is further noted that in comparison to Ethereum with a lower long -term risk score of 24, ADA appears to be better positioned for potentially obtained.
The Risk model holds the promise in the long run but Ali Martinez's technical review presents issues in the short term. Martinez posted a 4-hour Candlestick chart indicating a denial of the parallel channel dictating Ada's action for the previous night.
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