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3 Million Cardano (ADA) Addresses in Losses, Here's What Indicators Suggest

Mon, 05/29/2023 - 16:40
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Tomiwabold Olajide
Cardano (ADA) remains underbought
3 Million Cardano (ADA) Addresses in Losses, Here's What Indicators Suggest
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The "Break Even Price" indicator from IntoTheBlock suggests that three million Cardano addresses may currently be experiencing losses on their ADA holdings.

In this sense, the Break Even Price Indicator examines realized profits and losses based on on-chain data for addresses holding the crypto asset Cardano. This indicator gives an aggregate of holders' realized gains and losses for ADA.

The red clusters in the figure stand for addresses that have realized losses, while the green clusters indicate addresses that have realized gains.

Break Even Price Indicator, Courtesy: IntoTheBlock

A total of 1.16 million addresses, or 26.47%, have realized gains or are in profit at the current ADA price of $0.378.

The amount of 3.12 million ADA addresses, or 71.07%, are in losses; 107,810 addresses, or 2.46%, are at break-even in the meantime. This suggests that they are neither making money nor losing it.

Based on the historical break-even price indicator, on a year-to-date average, 1.01 million addresses are in profit, while 3.22 million ADA addresses are in losses.

At the time of writing, ADA was marginally up 0.36% in the last 24 hours to $0.377. On the upside, the next major barrier for the ADA price is at $0.379 to $0.388, where over 125,000 addresses bought 3.65 billion ADA.

On the other hand, immense support remains at $0.355 to $0.367, where more than 248,000 addresses bought 3.7 billion ADA.

Here's what on-chain signals suggest

IntoTheBlock presents seven on-chain signals for Cardano (ADA). Two of these on-chain signals are bullish at the moment; four of these are neutral, which includes net network growth, while large transactions are bearish. This adds up to a mostly bullish outlook.

Meanwhile, Cardano (ADA) continues to remain underbought, in line with the majority of altcoins. On-chain analytics firm Santiment observes restless addresses emptying their wallets and selling at a loss, with markets seeming dull to traders.

Cardano (ADA) Skyrockets in DeFi TVL Rankings, Here's Potential Reason

Based on its MVRV model, the vast majority of altcoins are flashing underbought signals across the sector, which might suggest that they have entered the opportunity zone.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.