Cardano's Price Surge Faces Potential Correction Amidst Profit Booking

Cardano's (ADA) price has recently surged, benefiting from the overall bullish market sentiment. However, despite this positive trend, whales and ADA holders may be looking to capitalize on profits. The Market Value to Realized Value (MVRV) ratio, a crucial indicator of investor profit and loss, currently stands at 11%, signaling that many investors are in a profitable position. This profitability often leads to selling pressure as investors aim to secure gains, potentially causing a price correction. Historically, Cardano tends to correct when the MVRV ratio is between 10% and 20%, known as the 'danger zone.' The recent surge in price, coupled with significant selling by whale addresses holding 1 million to 10 million ADA, could lead to a potential decline in Cardano's price. While a bounce off the $0.42 support level could sustain the rally, reclaiming $0.45 as support may invalidate the bearish outlook.