The cryptocurrency market has been riddled with significant selling pressure over the past week, with the Cardano price taking one of the largest hits among large-cap assets. According to CoinGecko data, the altcoin has lost more than 30% of its value in the past seven days. However, a crypto founder has opined that panic-selling Cardano during this significant phase of capitulation might not be the right move. $0.05-$0.10 Could Be A Good Accumulation Zone For ADA: Analyst In a June 5th post on the social media platform X, Alphractal founder and CEO Joao Wedson identified the relevant price levels to watch if the worst-case scenario crystallizes for the Cardano price. The on-chain data expert pinpointed $0.1097 and $0.03478 as the two key levels if this price correction continues. According to Wedson, the $0.1097 and $0.03478 represent the Thermo Price and Delta Price, respectively, for Cardano. The Alphractal explained that the Thermo Price, which is the more stable level, is estimated as the blockchain’s historical revenue (in USD) divided by the current circulating supply. Related Reading: XRP Monthly RSI Drops To All-Time Low As Market Watches For Confirmation Wedson defined this on-chain metric as the “price per coin,” based on the accumulated historical cost or revenue generated by issuance and the fees paid to validators over the blockchain’s lifespan. “It is an on-chain valuation metric, similar to a historical cost of production or network security diluted by circulating supply,” the crypto CEO explained. Meanwhile, the Delta Price measures the numerical difference between the Realized Price and the aforementioned Thermo Price of a cryptocurrency (Cardano, in this case). This on-chain metric connects investors’ average cost basis to validators’ mining (or production) costs, providing insights into deep-cycle bottom and long-term accumulation regions. According to Wedson, the Cardano price has only ever reached the Delta Price twice, while it has never touched the Thermo Price. “I am not saying the price will necessarily visit these levels, but these are regions that need to be monitored closely, since the values change frequently, especially the Delta Price,” the Alphractal CEO clarified. The crypto founder further highlighted that the $0.05 to $0.10 range could be a very “interesting” accumulation zone for the ADA token, especially if additional bearish pressure develops. Nevertheless, Wedson believes that, if the cryptocurrency does not fall any further, investors can simply wait a few months to buy Cardano (with much greater confidence) after a retest at higher levels. Cardano Price At A Glance As of this writing, the price of ADA stands at around $0.1568, reflecting a 16% decline in the past 24 hours. Related Reading: Are Institutions Crashing The Bitcoin Price On Purpose? Here’s What People Are Saying Featured image from iStock, chart from TradingView
