3.41 million Cardano addresses reportedly red as ADA price continues to fall towards the $1 level

ADA has fallen by over 11% in the last week

An increasing number of investors are facing unrealised losses due to the fall back in the price of Cardano’s native currency ADA towards the $1 psychological level, a report by IntoTheBlock money indicator stated.

According to CoinMarketCap, the cryptocurrency is currently trading at $1.03 with a 3.28% gain in the last 24 hours.

The open-source and decentralized public blockchain platform Cardano has witnessed a bearish week with prices falling over 11% since Monday. This has pushed holders into the red as ADA is currently trading at over 64% lower than its all-time high of $3.09 in September 2021.

More than 67% of ADA holders are currently underwater while 25% of Cardano investors are profiting and 9% are at a breakeven point, the report explained.  The threat of ADA falling below $1 continues to loom over its holders, especially if the present trend of cryptocurrency’s performance continues.

The IntoTheBlock indicator uses the average cost at which tokens were purchased and compares it to the current price to report its findings.  According to this analysis, 3.41 million ADA addresses are facing losses vis-à-vis the 1.25 million addresses still in the green.

The indicator also used the amount of time the token has been held as an indicator to state that over 75% of ADA holders hold the token for between one and 12 months. 11% of investors hold the currency for more than a year and are thus the ones still recording a profit.

Fears that ADA will hit its yearly low of $0.80 as seen in March 2022 have further prompted more investors to sell, plunging the currency.

However, in terms of fundamentals, Cardano continues to look strong. The blockchain’s dApps are waiting for the Vasil hard fork in June to launch and network demand has continued to grow after the launch of the SundaeSwap decentralized exchange (DEX).

The post 3.41 million Cardano addresses reportedly red as ADA price continues to fall towards the $1 level appeared first on Coin Journal.

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Author: Harshini Nag