In recent weeks, the price of Cardano (ADA) has experienced a significant decline, leading to an increase in the number of addresses holding the asset at a loss. This trend indicates that many investors who purchased Cardano at higher prices are now facing negative returns on their investments. According to the Global In/Out of the Money indicator on IntoTheBlock, approximately 74% of all ADA addresses are currently “out of the money,” with 3.31 million addresses holding ADA at a lower price than they purchased it for.
Addresses that purchased ADA at close to $0.39 are closest to breaking even despite the overall market downturn, holding around 2.57 billion ADA tokens collectively. However, the number of active addresses on the Cardano network has declined significantly in recent days, dropping to around 15,000 from a high of 29,527. This decrease in active addresses could indicate a decrease in network usage and engagement among Cardano investors.
Despite a decline in trading volume, the Cardano trading volume has recently seen a resurgence, reaching approximately $280 million as of the latest data. However, the price of ADA has continued to decline, dropping to the $0.37 range following a 1.58% decline. The resistance level for Cardano, indicated by its short moving average, is firmly established at around $0.44, suggesting that ADA may face challenges in breaking through this level in the near future.
In conclusion, Cardano has experienced a challenging period in terms of its price performance, with many investors holding ADA at a loss as the price continues to decline. The analysis of investor holdings and market conditions reveals the widespread impact of the price decline, with a majority of ADA addresses currently “out of the money.” Despite a decrease in active addresses and trading volume, there are signs of resurgence in trading activity, though the price of ADA remains under pressure. Investors should monitor these trends closely to make informed decisions about their Cardano investments.
