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Cardano: Majority of ADA addresses in a loss position – Will holders liquidate?

  • Oh no, ADA has dropped down to the $0.37 price level!
  • There has been a noticeable increase in the unrealized loss for ADA in recent weeks.

Lately, Cardano [ADA] has been facing some challenges with its price performance, resulting in a decline. This has led to a surge in the number of addresses holding ADA at a loss.

This trend shows that many investors who bought Cardano at higher prices are now dealing with negative returns.

Cardano’s Loss Situation

Analyzing the Global In/Out of the Money indicator for Cardano on IntoTheBlock gives us valuable insights into the current status of investor holdings.

Current data suggests that 3.31 million addresses are currently “out of the money,” indicating that the price of Cardano is lower compared to their purchase price.

Moreover, about 74% of all ADA addresses are currently in this “out of the money” situation, underlining the widespread impact of the price drop.

Cardano In/out of the money

Source: IntoTheBlock

A closer look reveals that addresses owning ADA around $0.39 are close to breaking even despite market conditions. Collectively, these addresses hold about 2.57 billion ADA tokens, with around 180,000 addresses falling into this category.

Decrease in Cardano’s Activity

The analysis of Cardano’s daily active addresses shows a steady decrease over the past few days. According to the chart by Santiment, active addresses dropped to approximately 29,000 by 20th July.

Cardano active addressesCardano active addresses

Source: Santiment

Furthermore, this decrease has been consistent, with the number of active addresses staying around 29,527 by the end of trading on 23rd June, dropping significantly to approximately 15,000 in the latest data. This decline might indicate reduced network usage.

Recent analysis of Cardano’s trading volume revealed a decline initially, followed by an increase in activity. Current data shows a trading volume of about $280 million, up from $202 million recorded on 23rd June.

Another Dip in ADA’s Price

AMBCrypto’s analysis of Cardano’s daily chart on 23rd June showed a 1% decline, pushing the price to around $0.38.

ADA price trendADA price trend

Source: TradingView


Wondering about your portfolio’s performance? Try the Cardano Profit Calculator


At the moment, the price has slipped further to the $0.37 range after a 1.58% decrease.

Additionally, the analysis points out that Cardano’s resistance level is around $0.44, marked by its short moving average (yellow line).

 

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