With Cardano’s price in a tailspin, are investors buying the dip?

Cardano [ADA] incurred one of the highest percentages of holders in losses among the dominant layer-1 (L1) networks, which has generated near-term demand concerns. Nonetheless, the problem of early adopters of ADA, who are now experiencing losses among a significant number of holders, is also becoming apparent. The sudden increase in loss percentages has sparked a concern about immediate demand and the coin’s general market stability.

According to data from IntoTheBlock, an on-chain analysis company, 35% of users who hold ADA are waiting to see positive returns. This is even lower than the number of Bitcoin (BTC) and Ethereum (ETH) holders reporting having profitable positions, which are 86% and 81%, respectively.

Despite its position as the 10th largest cryptocurrency by market cap, ADA has had sluggish price charts. The coin dropped 28% in value over the previous month and nearly 22% year-to-date (YTD), according to CoinMarketCap.

ADA’s haphazard results have played a crucial role in its declining market position. In recent weeks, other cryptocurrencies such as Dogecoin (DOGE) and Toncoin (TON) have overshadowed Bitcoin’s dominance, thereby increasing its worth.

The data presented by AMBCrypto from Sentiments metrics shows that ADA reached a significant peak of $0.77 in the middle of May, followed by a downtrend, which led to an average unrealized loss of 15.71% across the network. This volatility can prove challenging for investors and emphasizes the turbulent character of the market.

According to the ADA price forecast, owners of ADA (Cardano’s associated cryptocurrency) are currently experiencing an average 15.71% drop in the price if they sell at the present exchange rate. This phenomenon played a major role in the Cardano wallet crash, as the number of daily active addresses on the blockchain has declined from 70,000 at peak time to just 30,000 now.

Despite the recent volatility of ADA’s market performance, numerous analysts contend that the present reduced prices and unrestricted profits could potentially incentivize investors to purchase additional ADA. However, according to sentiment data compiled by AMBCrypto, the aforementioned strategy obscures investor sentiment.

The investors of ADA prefer not to buy cryptocurrency at lower market prices, and large owners have lost market share in the past 2-3 months. This trend reflects the current sentiment that the overall market is crashing.

Positive ADA holders continue to hold out optimism for a potential supercycle despite these obstacles. Experts predict that the ADA will likely surpass its all-time peak in 2025, drawing an analogy to its performance one year after the halving event in 2020.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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