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Cardano (ADA) has recently been making waves, though not of the kind its investors might have hoped for. According to data from IntoTheBlock, a significant portion of ADA's investor base is currently facing losses. Specifically, the data indicates that 43% of ADA holders are in the red, compared to 53% who are still enjoying profits at the current market prices.
This balance of profit and loss paints a mixed picture for Cardano, a blockchain platform often lauded for its scientific approach to development and strong community support. The data also reveals an interesting distribution of holdings: only 34% of ADA's total supply is held by large investors, a relatively low concentration compared to other major coins. Furthermore, 33% of ADA holders are classified as short-term investors, indicating a potential lack of long-term confidence in its performance.
Growing concerns for ADA
Adding to the concern is information from CoinGlass, pointing out a noticeable decline in market interest. Specifically, Open Interest in ADA, a measure often used to gauge market sentiment and future price movements, has seen a 3.15% decrease in the last 24 hours, bringing it down to $397.16 million. This decline could signal growing caution or waning enthusiasm among traders and investors.
Moreover, the market price of ADA reflects the undercurrents of uncertainty and bearish sentiment. Currently, the price of ADA is in a phase of consolidation, with a present trading value of $0.6244. This marks a 1.39% decrease over the last day, mirroring a broader decline trend on the market. Moreover, trading volume has also taken a hit, plummeting by 26.49% to stand at $606,661,064 over the same period.
These figures come at a time when the broader crypto market is facing numerous challenges, from regulatory hurdles to macroeconomic pressures that have led to increased market volatility. Cardano, despite its strong technological foundation and dedicated community, has not been immune to these external pressures.
Gamza Khanzadaev
Tomiwabold Olajide
