Cardano Holders Face Prolonged Downturn, Market Signals Further Decline

Cardano (ADA) has endured a significant price decline of 34.40% within the last month. Currently, over 2.56 million Cardano holders, representing 57% of all addresses, are experiencing losses. Despite the dwindling support from bullish investors, some analysts maintain an optimistic outlook for Cardano's long-term trajectory based on a bullish RSI cross observed in late 2023.

Cardano Holders Endure Prolonged Price Slump, Market Metrics Signal Further Decline

Cardano (ADA), the eighth largest cryptocurrency by market capitalization, has experienced a sustained price decline over the past 30 days, raising concerns among investors and analysts alike. Key on-chain metrics indicate that this downtrend is likely to continue in the near future.

Significant Losses for Cardano Holders

On-chain data from IntoTheBlock's "In/Out of the Money" metric reveals that the number of Cardano holders incurring losses has surged to a concerning level. As of writing, over 2.56 million Cardano addresses, representing approximately 57% of the total, are currently underwater.

Lackluster Price Performance

Cardano's price performance has been lackluster in recent months, with a notable 34.40% decline over the past 30 days. This downward trajectory was exacerbated by a recent sell-off in Bitcoin, which saw the leading cryptocurrency plunge by 5% in the preceding 24-hour period. Consequently, Cardano's price fell below $0.5 for the first time since February 8th.

The bulls' lackluster performance has resulted in a 55% drop from Cardano's yearly high of $0.8009, set on March 14th. The cryptocurrency is currently trading at approximately 83% below its all-time high, making it one of the worst performers among large-cap assets in the current market cycle.

Market Dynamics Unfavorable for Cardano

Recent market dynamics have further exacerbated Cardano's decline. The cryptocurrency has fallen in market cap rankings, being displaced by Toncoin (TON), which surged by 96% during the week to reach a new all-time high of $7.63.

IntoTheBlock's "In/Out of the Money Around Price" metric indicates that a majority (49.32%) of addresses that purchased Cardano within the current price range of $0.429462 and $0.582659 are currently in losses.

Bears May Hold the Upper Hand

Various on-chain signals from IntoTheBlock suggest that the bears may soon gain the upper hand. Bullish large transactions have declined by 2.29% in the past 24 hours, while the net network growth has decreased by 0.18% in the same timeframe.

Bullish Arguments Remain

Despite the bearish outlook, some Cardano supporters maintain optimism. Crypto analyst Trend Rider asserts that Cardano remains in a clear bull market phase on the monthly timeframe. His analysis is based on a bullish RSI cross that occurred in the last quarter of 2023, which he believes is the second such occurrence in Cardano's price history. Similar to the first cross, this event could potentially lead to a surge in Cardano's price in the coming months.

Conclusion

Cardano's prolonged price decline and unfavorable market dynamics have raised concerns for its holders. On-chain metrics indicate that further losses may be imminent in the short term. However, some analysts remain optimistic about Cardano's long-term prospects, citing potential bullish signals from historical data. Investors are advised to exercise caution and monitor the market closely before making any investment decisions.