Overview
- ADA held near $0.26 this week as Santiment flagged a 365-day MVRV of minus 43% and the most negative Binance funding since June 2023.
- MVRV tracks the gap between market price and what holders paid on average, so a minus 43% reading means most active wallets are deep in loss, which can reduce new selling pressure.
- Funding rates turned sharply negative on Binance, which shows shorts are paying longs to keep positions open and sets the stage for a squeeze if prices tick higher.
- Developers expect the Midnight privacy sidechain to launch this week and are preparing Node 10.7.0 for the van Rossem upgrade, though Midnight uses NIGHT and DUST rather than ADA for fees.
- Analysts caution that ADA is still down about 71% since September and trades below major moving averages, and a decisive drop under $0.25 would increase the risk of further losses even with squeeze signals in place.