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In the midst of recent relief on the crypto market, after yesterday's merry-go-round, quotes of Cardano token ADA are greening up, and right now, they are showing a modest 1.2% addition. However, an impending obstacle looms over ADA's potential upward movement, creating uncertainty for a recent price surge.
Yuri MolchanIntoTheBlock has unveiled data that sheds light on a significant roadblock standing in the way of ADA's price growth. Approximately four billion ADA, currently valued between $0.282 and $0.326, remains stuck in a state of unprofitability. Once the price crosses this threshold, these holders will have the opportunity to sell their tokens at breakeven or even at a slight profit.
If ADA manages to surpass this crucial hurdle, further pressure is expected to build up. This outcome should not come as a surprise, considering that a staggering 76% of Cardano's token offering is in the red globally. Astonishingly, only 12.2% of all ADA holders are currently enjoying profits.
Closer look
Digging deeper into the data, it becomes clear that the largest group of Cardano token holders experiencing losses acquired ADA at prices ranging from $1.62 to $2.97, encompassing 686,110 addresses. Additionally, the most significant number of ADA tokens currently in a loss-making position was purchased in the range of $0.375 to $0.43, totaling a substantial 8.85 billion tokens.
Arman ShirinyanThis four billion ADA roadblock presents a critical juncture for Cardano's price trajectory. If it fails to breach this threshold, downward pressure may persist, further adding to the concerns of those holding the cryptocurrency.
Dan Burgin
Alex Dovbnya