Cardano’s (ADA) price fell on Thursday along with the rest of the cryptocurrency market, and the losses persisted into Friday. The profitability of the digital asset has suffered a severe blow as a result of this drop. When it comes to the profitability of its holders, the altcoin is now the weakest performance among the top 10 cryptocurrencies by market cap.
Cardano (ADA) has largely gone down over the past few months, with sporadic recoveries. The native ADA coin’s price decrease has had a significant impact on its owners, who have witnessed losses in their portfolios.
The most recent market fall has once again left ADA holders clutching the bag, as data from IntoTheBlock reveals that the majority of holders are still suffering losses. A staggering 91% of all ADA investors are currently losing money, according to the on-chain data tracker.
This measurement is obtained by comparing the price at which coins were most recently moved on the blockchain to the current pricing. Holders are in the black if the price at which they were most recently traded was lower. The holders are considered to be experiencing losses if the situation is the opposite.
Only 5% of ADA holders are now making any money, and the remaining 3% are in a neutral position. This indicates that these individuals purchased their coins at prices close to the going market rate. For Cardano, this means that its owners are experiencing greater losses than those of any other top-10 cryptocurrency.
Recovery is typically anticipated following such a steep decline, but given the current state of market morale, it might be more difficult. Given that such a sizable portion of its hold base is currently in losses, as IntoTheBlock demonstrates, the metrics for Cardano are currently primarily bearish.
This is also consistent with the general market sentiment’s decrease. In reality, there was a significant decline in the Crypto Fear & Greed Index, which went from a neutral 50 on Thursday to a very scared 37 on Friday. As a result, investors are more cautious about the market, and this caution leads to a reluctance to invest additional money because of the risk of losing it.
Consequently, it is safe to assume that Cardano’s recovery depends on Bitcoin’s recovery, which will then influence the rest of the market. A greater number of investors may go into ADA if prices increase and general market sentiment starts to improve as a result. The altcoin’s price, however, is probably going to stay low until then.
ADA is currently trading at $0.26, down 4.49% from the previous day.
