Cardano Crisis Or Comeback? ADA’s Key Metric Hits Low, What This Means For Investors
26 Avril 2024 - 12:00AM
NEWSBTC
Data from analytics platform IntoTheBlock have illuminated a
troubling trend within the Cardano (ADA) network, showing a
significant dip in ‘profitability’ for its holders. While
cryptocurrencies like Bitcoin and TRX show a high percentage of
holders in profit, Cardano stands in stark contrast, with only 35%
of its holders currently seeing gains. This insight into the
Cardano ecosystem reveals deeper challenges, as many of ADA’s
transactions now appear to be at a loss. The chart below shows the
percentage of holders in profit on several top layer 1 networks 👇
Bitcoin remains king, with $TRX being a close second. $DOGE and
$ETH also have the vast majority of holders in profit. $ADA stands
out with only 35% of holders in profit. But is this…
pic.twitter.com/x9YwfuNIN4 — IntoTheBlock (@intotheblock) April 24,
2024 Details Into ADA Investors Profitability The report’s
specifics indicate that out of 1.59 million addresses holding 14.07
billion ADA, a substantial amount of these tokens were acquired at
higher price points that are not profitable under current market
conditions. Related Reading: Cardano ADA Trades Below The $0.41
Mark, Will It Break The Barriers? In particular, 2.73 million
addresses are underwater, holding 20.07 billion ADA purchased at
price levels between $0.5975 and $0.7265. This significant segment
of loss-bearing investments places downward pressure on ADA’s
market price, contributing to recent price volatility. Despite the
immediate bearish outlook, ADA has shown resilience with a weekly
gain of 4.2%, bringing its price to $0.4661 at the time of writing.
This slight recovery suggests that while short-term pressures are
evident, investor confidence remains in the token’s fundamentals.
Notably, the crypto community is buzzing about potential future
gains for ADA based on historical data and technical analysis.
Prominent crypto analyst Ali has pointed out that ADA’s Market
Value to Realized Value (MVRV) ratio is lower than -22%, indicating
that the asset is significantly undervalued. This situation is
similar to June 2023, following which ADA experienced a substantial
75% increase in value. Ali forecasts a potential surge in ADA’s
price to $0.80 from these past trends, which would mark a
significant recovery and the highest value for the token in over a
year. The last time #Cardano‘s MVRV Ratio dipped below -22%, $ADA‘s
price soared by over 75%. With the #ADA MVRV Ratio back under -22%,
we could see another impressive rebound! pic.twitter.com/ABf0mp4pR4
— Ali (@ali_charts) April 19, 2024 Cardano Technical Analysis
Supports Bullish Predictions Another analyst, Trend Rider on X,
further supported the optimistic projections for ADA and noted that
Cardano’s technical indicators signal a potential bull run.
According to Trend Rider, ADA’s Relative Strength Index (RSI) and
Simple Moving Average (SMA) crossovers form a pattern that mirrors
previous setups, leading to major price increases. For instance, a
similar formation was observed before ADA’s monumental rise from
$0.05 to $3.00. This confluence of technical and market value
analyses presents a compelling case for Cardano’s potential
turnaround. While current holder profitability is low, the
technical indicators and historical performance suggest that ADA
could be on the cusp of a significant upward trajectory. Featured
image from Unsplash, Chart from TradingView
Ethereum (COIN:ETHUSD)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Ethereum (COIN:ETHUSD)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024