Cardano is in the "opportunity zone" as it signals strong accumulation potential.

Cardano (ADA) continues to face bearish pressure after several unsuccessful bounce back attempts. However, the recent fall may have opened up a new opportunity for investors.

As the price of ADA enters an important accumulation zone, interest from buyers is returning, creating favorable conditions for the possibility of bounce back.

Cardano is looking for opportunities

The Market Value to Realized Value ratio (MVRV) currently indicates that Cardano is in a zone of opportunity. With values ranging from -9% to -19%, this indicator suggests that the majority of ADA holders are experiencing unrealized losses.

History shows that this price range often marks the local market bottom, where selling activity usually slows down and the accumulation process begins.

This development could be the first sign that market sentiment is changing. When holders stop selling and investors start buying at lower prices, the increasing demand could provide ADA with the necessary momentum to stabilize.

Cardano's MVRV ratio | Source: SantimentThe Chaikin Money Flow indicator (CMF) also reinforces this reversal potential. Data shows that Cardano has recorded continuous inflows in recent days, signaling a return of confidence from investors.

Currently, the CMF is in the positive zone on the zero line, confirming positive capital movement into ADA.

Cardano CMF Indicator | Source: TradingViewSustained inflows are often a precursor to price bounce backs, especially when accompanied by reduced selling pressure. If this trend continues, Cardano may gradually regain momentum in the short term.

ADA price may bounce back

As of the time of writing, the price of Cardano is at 0.64 USD, holding above the support level of 0.623 USD. This altcoin is still under pressure below the resistance level of 0.661 USD, where it has faced multiple rejections hindering its progress over the past week.

If current conditions continue, ADA may surpass the threshold of 0.661 USD and target the level of 0.696 USD. However, for Cardano to truly mark a bounce back, it needs to reach and maintain price levels above 0.754 USD. Such a move would confirm the return of market strength and investor optimism.

Cardano Price Analysis | Source: TradingViewConversely, if ADA faces selling pressure again, the price may fall below 0.623 USD and test the 0.608 USD level. Failing to hold these support levels will invalidate the bullish outlook and may trigger additional bearish pressure.

Mr. Teacher