Deep Dive Into Cardanoโs Recent Price Decline ๐
Cardano (ADA) has faced a significant price decline over the past month, with important metrics pointing towards continued downward movement in the near future.
Cardano Holders Bear the Brunt of Recent Price Drop ๐
The recent decline in Cardanoโs price has led to a substantial decrease in the number of holders in profit, as highlighted by on-chain data. Specifically, IntoTheBlockโs โIn/Out of the Moneyโ metric has revealed that the number of Cardano holders in losses has surged to 2.56 million addresses, representing over 57% of the total addresses.
Cardanoโs Lackluster Price Performance ๐
Currently, Cardano has experienced a 34.40% price drop in the past month. This decline was further exacerbated by a recent selloff in Bitcoin, causing the primary digital asset to plummet by 5% within 24 hours. Consequently, Cardanoโs price fell below $0.5 for the first time since February 8.
- The lackluster performance from the bulls has resulted in a 55% drop for Cardano from its yearly high of $0.8009, set on March 14.
- Cardano is currently trading 83% down from its all-time high, showcasing one of the worst performances among major cryptocurrencies in the current market cycle.
Market Dynamics Displace Cardano in Rankings ๐
Recent market movements have pushed Cardano down in market cap rankings, with Toncoin (TON) displacing it after a remarkable 96% surge in a week, reaching a new all-time high of $7.63. This shift has resulted in a higher percentage of Cardano holders falling into losses, with 57.38% of addresses currently in the red compared to 35.66% in profit.
Majority of Addresses at a Loss ๐
According to IntoTheBlockโs โIn/Out of the Money Around Priceโ metric, the majority of Cardano addresses (49.32%) that purchased within the current price range of $0.429462 and $0.582659 are currently at a loss.
Whatโs Next For Cardano? ๐
Cardano is currently trading at $0.5134, and bulls are struggling to maintain levels above $0.5. On-chain indicators from IntoTheBlock suggest that bears may gain control shortly, as bullish large transactions have decreased by 2.29% in the past 24 hours, with net network growth dropping by 0.18% in the same period.
Optimism Amidst the Decline ๐
Despite the current market conditions, some Cardano supporters remain optimistic about the cryptocurrencyโs trajectory. Crypto analyst Trend Rider believes that Cardano is still in a clear bull market phase on the monthly timeframe. Based on a bullish RSI cross in late 2023, Trend Rider predicts potential price surges for Cardano in the coming months.
As an investor, itโs crucial to monitor Cardanoโs price performance amidst the current downtrend. Keep a close eye on market indicators and expert analyses to make informed decisions about your ADA holdings. While the short-term outlook may seem challenging, long-term prospects for Cardanoโs price recovery remain hopeful.
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