Cardano (ADA) Faces Tough Market: 74% of Addresses at a Loss Amid Ongoing Decline

• Cardano’s [ADA] price has recently dropped to the $0.37 mark.
• This decline has resulted in an increase in unrealized losses for many ADA investors.
• Current data indicates that a significant portion of ADA holders are experiencing negative returns.

Discover the latest developments in Cardano’s price movement and understand its impact on investor sentiment in our comprehensive analysis.

Current State of Cardano Investors

Recent analysis of the Global In/Out of the Money indicator from IntoTheBlock reveals a troubling trend among Cardano investors. A staggering 3.31 million addresses are currently “out of the money,” meaning the market price is below the average purchase price for these investors.

Significant Proportion in Red Zone

The data shows that roughly 74% of Cardano addresses are facing losses, highlighting the profound effect of the recent price slump. A closer look indicates that addresses that bought ADA around the $0.39 level are close to breaking even, despite the prevailing downtrend. These particular addresses hold approximately 2.57 billion ADA tokens and include around 180,000 investors.

Decline in Active Addresses

The activity on the Cardano network has shown a noticeable decrease. According to Santiment, the number of daily active addresses dropped to about 29,000 by July 20. This figure has since reduced further to approximately 15,000, hinting at a waning engagement with the network.

Trading Volume Analysis

Despite the decline in active addresses, Cardano’s trading volume has shown some resilience. Recent records indicate that trading volume rose to about $280 million, up from $202 million noted at the end of June.

Impact of ADA Price Declines

An in-depth look at Cardano’s daily time frame chart reveals a persistent decline in ADA prices. After a 1% drop on June 23, ADA was trading near $0.38. Currently, it has decreased further to around $0.37, following an additional 1.58% decline. The resistance level is firmly placed at approximately $0.44, according to the short moving average (yellow line) analysis.

Conclusion

In summary, Cardano’s recent price downturn has significantly impacted investor sentiment, with a substantial number of addresses underwater. The decline in active addresses further suggests decreased network engagement. However, the modest recovery in trading volume offers a glimmer of resilience. Investors and stakeholders now look towards future developments to gauge the potential recovery trajectory of ADA.