Cardano Crisis Or Comeback? ADAs Key Metric Hits Low, What This Means For Investors

Data from analytics platform IntoTheBlock have illuminated a troubling trend within the Cardano (ADA) network, showing a significant dip in ‘profitability’ for its holders. While cryptocurrencies like Bitcoin and TRX show a high percentage of holders in profit, Cardano stands in stark contrast, with only 35% of its holders currently seeing gains. This insight into the Cardano ecosystem reveals deeper challenges, as many of ADA’s transactions now appear to be at a loss. The chart below shows the percentage of holders in profit on several top layer 1 networks Bitcoin remains king, with $TRX being a close second. $DOGE and $ETH also have the vast majority of holders in profit. $ADA stands out with only 35% of holders in profit. But is this pic.twitter.com/x9YwfuNIN4 IntoTheBlock (@intotheblock) April 24, 2024 Details Into ADA Investors Profitability The report’s specifics indicate that out of 1.59 million addresses holding 14.07 billion ADA, a substantial amount of these tokens were acquired at higher price points that are not profitable under current market conditions. Related Reading: Cardano ADA Trades Below The $0.41 Mark, Will It Break The Barriers? In particular, 2.73 million addresses are underwater, holding 20.07 billion ADA purchased at price levels between $0.5975 and $0.7265. This significant segment of loss-bearing investments places downward pressure on ADA’s market price, contributing to recent price volatility. Despite the immediate bearish outlook, ADA has shown resilience with a weekly gain of 4.2%, bringing its price to $0.4661 at the time of writing. This slight recovery suggests that while short-term pressures are evident, investor confidence remains in the token’s fundamentals. Notably, the crypto community is buzzing about potential future gains for ADA based on historical data and technical analysis. Prominent crypto analyst Ali has pointed out that ADA’s Market Value to Realized Value (MVRV) ratio is lower than -22%, indicating that the asset is significantly undervalued. This situation is similar to June 2023, following which ADA experienced a substantial 75% increase in value. Ali forecasts a potential surge in ADA’s price to $0.80 from these past trends, which would mark a significant recovery and the highest value for the token in over a year. The last time #Cardano‘s MVRV Ratio dipped below -22%, $ADA‘s price soared by over 75%. With the #ADA MVRV Ratio back under -22%, we could see another impressive rebound! pic.twitter.com/ABf0mp4pR4 Ali (@ali_charts) April 19, 2024 Cardano Technical Analysis Supports Bullish Predictions Another analyst, Trend Rider on X, further supported the optimistic projections for ADA and noted that Cardanos technical indicators signal a potential bull run. According to Trend Rider, ADA’s Relative Strength Index (RSI) and Simple Moving Average (SMA) crossovers form a pattern that mirrors previous setups, leading to major price increases. For instance, a similar formation was observed before ADA’s monumental rise from $0.05 to $3.00. This confluence of technical and market value analyses presents a compelling case for Cardanos potential turnaround. While current holder profitability is low, the technical indicators and historical performance suggest that ADA could be on the cusp of a significant upward trajectory. Featured image from Unsplash, Chart from TradingView

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Cardano Breakout Eyes $0.80 Resistance Is ADA Repeating Its ATH Playbook?

Amid the market recovery, Cardano (ADA) has seen a 5% daily surge to retest the $0.66 level. Its recent price action has led the cryptocurrency to break out of a bullish formation, which could propel ADA to a key resistance zone. Related Reading: Ethereum Attempts Breakout From Multi-Month Downtrend, But Can ETH Hold $1,600? Cardano Breakout Eyes 27% Move On Tuesday, Cardano followed Bitcoins price jump and climbed to the $0.66 resistance, attempting to break above the key level for the third time this month. ADA has been in a downtrend since hitting its 3-year high of $1.32 in December 2024, retracing over 50% in the past four months. In March, the cryptocurrency surged 80% toward the $1.17 mark, driven by US President Donald Trumps initial announcement of a Crypto Strategic Reserve comprised of ADA, XRP, and Solana (SOL). However, after the White Houses Crypto Czar, David Sacks, explained that the listed cryptocurrencies were used as an example of leading tokens, ADAs price retraced to the $0.70-$0.80 range. Amid the late March retraces, Cardano lost the $0.70 mark, falling to the $0.50-$0-55 zone in early April. This month, the cryptocurrency has retested the $0.66 level but has been rejected twice. Today, it attempted to break this level again but was rejected a third time. Nonetheless, analyst Ali Martinez pointed out that ADA has broken out of a symmetrical triangle pattern amid its current performance. Cardano has been consolidating within a symmetrical triangle formation throughout April, setting the stage for a 27% price move. After surging above the $0.63 mark, ADA broke out of the pattern, eyeing a surge toward the $0.77 resistance next. ADA Preparing For Key Retests Analyst Sebastian noted that the cryptocurrency is brewing, as its moving within a four-month descending channel. ADA has bounced toward the upper boundary, which has served as resistance, each time it has retested the lower trendline as support. After the recent drop to $0.50, Cardano could retest the upper boundary soon, at around the $0.80 price range. Moreover, the analyst pointed out that the token is currently breaking out of an Inverse Head & Shoulders pattern within the descending channel, which could see the cryptocurrency surge toward the key resistance level. Another market watcher suggested that the cryptocurrency could be following its 2020-2021 pattern. According to the chart, once ADA broke out of its bear market rally levels, it reached a new cycle high, followed by a retest of the bear market rally as support. Related Reading: Analyst Says The Clock Is Ticking For XRP Heres Why After breaking out of the downtrend, it rallied toward its all-time high (ATH) of $3.09 in the coming months. If ADA broke out this week and followed the same pattern as last cycle, it would be on track to hit a new ATH in the middle of August, the analyst asserted. Meanwhile, Dan Gambardello affirmed that Cardanos biggest resistance is at the $3 mark, where a lot of people have regret for not selling last cycle. The analyst forecasted that once ADA hits ATH levels, its pump will probably pause in that general area with a lot of volatility, and then continue to $5. Itll be like a crypto bus stop. Featured Image from Unsplash.com, Chart from TradingView.com

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Cardano (ADA) Faces Key Resistance Level At 0.385, Will It Break Through?

Cardano (ADA) is experiencing a significant challenge despite its strong bullish momentum since March 21st. The cryptocurrency’s price is stalled at a local resistance level of $0.385, which has proven to be a significant barrier for ADA in its price movement. ADA is trading at $0.3704, recording a decline of over 3.5% in the past [...]

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ADA Price Breakout: Analyst Predicts New All-Time High As Cardano Surges by 30%

Cardano (ADA), the ninth-largest cryptocurrency in the market, has experienced a significant price breakout, reaching $0.710 on Thursday for the first time since May 2022.  This marks a pivotal moment for ADA as it emerges from a prolonged consolidation phase encompassing the latter part of 2023 and the initial month of 2024. With the price [...]

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Cardano (ADA) Soars 10% In The Last Week, More Rallies Ahead?

Cardano’s (ADA) price has scored over 10% on the weekly chart as the broader market sees a correction. Most coins registered unexpected price surges amid the resurgent crypto market last week. However, ADA, the native token of the Cardano blockchain, stood out among the digital tokens with a notable price surge over five consecutive days of [...]

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Cardano Sees A Spike In On-Chain Activity, Should You Buy ADA Now?

Charles Hoskinson, Cardano (ADA) founder, has explained how the cryptocurrency’s future privacy protocol (Midnight) would work within their ecosystem.  In a recent YouTube interview, he claimed that the planned integration would help establish a confidentiality network of smart contracts. According to him, Midnight aims to resolve the paradoxical issue of having privacy and disclosure of a protocol’s rules simultaneously. Related Reading: Quant Explains How This Nasdaq Support Retest Could Also Help Reverse Bitcoin The announcement yielded positive results, evident with a spike in on-chain activity. Data from Santiment on Cardano’s Age Consumed showed a movement of over 107 billion ADA (including old coins) on December 7.  Cardano’s Growth Booster: New Privacy Protocols And A Surge In On-Chain Activity Below are the critical remarks made by Charles Hoskinson in the interview streamed on Corey Costa’s Crypto Coins YouTube channel. From a regulatory perspective, you’re not actually allowed to use blockchain systems [for privacy]. Why? There’s [the] Bank Secrecy Act, GDPR [General Data Protection Regulation], you have all these privacy departments. He continued: Anytime you could engage in a regulated business, there’s a privacy requirement because regulated business requires you to give away some personally-definable information, and there’s a privacy law on the other side of it that says you have to keep it a secret. Hoskinson further added, The problem is that if you try to do it in a blockchain setting, your private information becomes public to everybody… so it made sense to me to find a way to… create a confidentiality network, so like what Ethereum did to Bitcoin, where Ethereum said ‘we have programmability,’ Midnight does to [Cardano], where instead of having a privacy coin, what you do is you have a confidentiality network, you have smart private contracts. Cardano’s Midnight targets a general issue—concurrent privacy and disclosure legislation—that most blockchain protocols face. And the result is a surge in on-chain activity, which many experts believe would add more value to the network. Should You Buy Cardano Now? Please note ADA has a fixed maximum supply of 45 billion tokens maximum supply. This figure would eventually have an impact on the cryptocurrency’s value in the future when it reaches its max supply. The future value of this coin may depend on its new privacy technology. Related Reading: Luna Classic (LUNC) Price Under Bearish Pull Despite New Developments Cardano Crypto (ADA), according to CoinMarketCap, traded at a 3.33% loss. Even on its intraday charts, it prints a 0.12% loss. However, it experienced much volatility before grabbing profits. On the bright side, the token’s wallet addresses have increased, signaling a possible spike in demand. Possible catalysts could be the blockchain’s increased push for development. We can only wait to see how this surge affects the overall sentiment. Featured image from Pixabay and char from TradingView.com

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Cardano (ADA) Forms Local Resistance As It Readies For Another 40% Liftoff

Cardano (ADA) has been on the receiving end on some of the most brutal beatdowns the crypto market has dished out in recent times. The cryptocurrency had managed to grow from about $0.20 at the beginning of 2021 to a high of $3, which saw investors cashing out massive gains. However, the trip down would prove to be just as swift and impactful as the trip up. ADA has since lost about 60% of its all-time high value, falling below $1 for the first time in eight months. Since the digital asset has spent such a long time in a downtrend, there looks to be nowhere to go but up as ADA plots its move upwards after forming a local resistance point. ADA Ready For Takeoff After a long time in a downtrend, ADA has finally formed a local resistance. With this resistance, the digital asset is looking towards a liftoff from this point. One thing to note is that even when the rest of the market had begun to rebound, Cardano had continued to trend low. Momentum stayed down, translating to no meaningful movement despite the market gaining over $200 billion in a single weekend. Related Reading | Cosmos Records 20% Gain, What’s Behind The Boom In Its Ecosystem A look at the charts shows that this may have positive connotations for the value ADA going forward. For instance, ADA is now trading in a support zone between $0.90 and $1.20, as illustrated in this analysis by a trader. It is doing this while the rest of the market is already recovering significant portions of its lost value during the crash, showing that it has indeed formed local support. Cardano To Bounce 40% Looking at the past, a few things of note show that this is an important point for Cardano. One of these is the historical data that outlines what ADA has done after forming a local resistance. Like clockwork, the price of the digital asset has been able to bounce up from its support zone the past three times this has happened. There is nothing to suggest that this cannot happen for the fourth time. ADA readies for takeoff | Source: ADAUSD on TradingView.com Furthermore, the local strong resistance zone happens to coincide with the 0.3 Fibonacci correction level, indicating that the digital asset is currently undervalued. Sticking with this analysis, ADA may see a 35% to 40% bounce upward from its current point if history repeats itself. This will catapult ADA out of its current trend, breaking through months of low momentum towards the $1.55 to $1.65 point, where it will form another local resistance zone. Related Reading | Cardano Zooms Up By 6%; How Soon Will It Target $1.4? The rest from here on out is mainly a waiting game. The network is seeing increased adoption due to its first major DEX, SundaeSwap, launching on the blockchain. As ADA usage on the network grows, so does the likelihood of a bounce. Featured image from The Balance, chart from TradingView.com

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