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Massive 4 Billion ADA Roadblock Threatens Cardano Token's Price Surge

Fri, 07/07/2023 - 11:49
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Gamza Khanzadaev
Cardano token's price surges today, but ahead is major barrier worth billions of ADA
Massive 4 Billion ADA Roadblock Threatens Cardano Token's Price Surge
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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.

Cardano Fan Dan Gambardello Gives Reasons Why ADA Will Start Outperforming Soon

IntoTheBlock 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.

Source: IntoTheBlock

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

Source: IntoTheBlock

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.

Cardano (ADA) Forming Extremely Important Pattern

This 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.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.