As a seasoned researcher with a knack for deciphering market trends and a soft spot for altcoins, I find myself looking at Cardano (ADA) with a mix of concern and curiosity. The asset has been on a downward spiral since its 34-month high in March, and the current price is dangerously close to its one-year low.
Since March, Cardano has faced difficulties, approaching levels near its lowest point over the past year. On-chain signals suggest a possible buildup of selling tension.
Since reaching a peak of $0.807, a 34-month high, on March 12, Cardano (ADA) has displayed a trend of decline, dropping by approximately 15% over the last month. It’s approaching the one-year low it had hit at around $0.29.
Currently, the price of ADA stands at approximately $0.33, with a massive market capitalization of around $11.8 billion. Interestingly, the day-to-day trading volume has seen an upward trend of about 5%, currently sitting comfortably at around $185 million.
Investors offsetting losses
Over the past week, the number of daily active Cardano (ADA) addresses experiencing losses has significantly grown, rising from approximately 1,680 to 11,960 unique addresses, as suggested by data from IntoTheBlock. An increase in Daily Active Addresses (DAA) in loss often signals that investors might be panicking.
As a result, this situation might lead to a surge in selling activity since some investors may choose to recoup their losses.
As an analyst, I’m closely monitoring the upcoming U.S. presidential elections, and I can’t help but notice the potential impact it may have on the market, including the price movement of cryptocurrencies like Cardano. Given the widespread uncertainty surrounding the election results, it’s plausible that this added volatility could fuel the bearish trend for Cardano in the short term.
According to data from ITB, just about one out of every five ADA holders currently finds themselves in a profitable position at the current price level. Approximately 3.6% of these ADA holders are near breaking even, meaning they’re not far from recovering their initial investment. The rest, unfortunately, are experiencing losses with their holdings.
Currently, Cardano is 89% down from its all-time high of $3.1 on Sept. 2, 2021.
Although the ADA token’s quantity in circulation is relatively small compared to its total market value, it contributes to a pessimistic outlook towards the asset. As per Tokenomist data, 18.53 million ADA tokens, equivalent to $6.15 million, were added to the circulating supply on October 27th. Another identical amount is set to be released into circulation on November 1st.
To date, approximately 77.11% (or around 34.99 billion) of the total available 45 billion ADA tokens have been circulated.
Last week, Cardano announced the integration of BitcoinOS’ Grail Bridge to utilize Bitcoin’s (BTC) $1.3 liquidity. This could allow Bitcoin holders to make transactions to other networks using the zero-knowledge mechanism without any intermediaries.
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2024-10-28 12:04