Cardano's Recent Surge in Value Raises Questions About Sustainability

Cardano (ADA), one of the largest-cap cryptocurrencies, has experienced a significant surge in value over the past week. According to Santiment's Market Value to Realized Value (MVRV) analysis, ADA is currently trading in a 'mildly overvalued' zone, reflecting its 6.8% gains over the past month.

However, this has not deterred key Cardano whales and sharks from accumulating the asset. Over the past six months, wallets holding between 100,000 and 100 million ADA have collectively added more than 819.4 million ADA, despite the price dropping from $0.90 to $0.26.

This accumulation pattern often indicates long-term confidence from major investors, providing a foundation for sustained price support. As the ecosystem enters a new phase defined by enhanced interoperability and steady development progress, Cardano is poised for larger directional moves once market sentiment shifts.