Cardano Holders Seeing Increased Profitability
The profitability of Cardano (ADA) holders has reached one of its highest levels in 2023. This metric measures the price at which the coins were last moved compared to the current spot price of the asset, showing that the most amount of ADA holders are in profit.
Cardano Holders In Profit Rises To 37.59%
After the recent altcoin rally, the percentage of Cardano holders seeing a profit has hit its peak this year. Data from IntoTheBlock indicates that 37.59% of all holders are in profit as of November 11, marking the highest level so far this year.
To put this rise in profitability in perspective, at its lowest level this year, only 3.91% of all ADA holders were seeing a profit as of October 19. This was the culmination of a year filled with losses for Cardano holders while the price suffered multiple dips.
Currently, there are 1.51 million holders in profit (33.92%) as of November 13, with 2.61 million holders holding underwater bags, accounting for 58.52%, while 218,700 holders (4.9%) are sitting in neutral.
Increase In Profitability and Its Implications
The increase in holders in profit has also moved up the year-to-date average of holders seeing a profit. There are now 716,540 addresses in the green on a YTD average accounting for 16.29% of the total holder base.
Is It Time To Sell ADA?
A rise in the profitability of Cardano holders could be a sell signal. When holders who have been in losses for a long stretch move back into profit territory, they are likely to sell some or all of their holdings to realize profit.
This profit-taking can impact the ADA price depending on the size and volume being offloaded into the market. This supply reintroduced into circulation could overwhelm demand and trigger a decline.
Hot Take: The Future for ADA Holders
The increased profitability for Cardano holders is a positive sign amid a year marked by losses. However, it also raises concerns about potential profit-taking leading to a decline in price due to an overwhelming supply being introduced into the market. It’s important to monitor market movements and holder behaviors closely to make informed decisions about your ADA holdings.
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