Cardano (ADA) has recently experienced troubling price movements, leading to a significant increase in the number of addresses in the red. Investors who purchased ADA at higher prices are now facing substantial losses as the cryptocurrency’s value continues to plummet. The analysis shared by IntoTheBlock reveals that a staggering 3.31 million addresses are currently “out of the money,” indicating that these investors bought at prices higher than the current market value.
Why Are ADA Investors Facing Losses?
Further analysis indicates that approximately 74% of ADA investors are underwater, significantly impacted by the price decline. Detailed examinations highlight that those who bought ADA around $0.39 are nearing the breakeven point, despite the ongoing price drop. This group of investors holds a substantial 2.57 billion ADA tokens, with around 180,000 addresses making up a large investor category within this segment.
What Is the Current Status of Cardano Addresses?
Recent data from Santiment shows a noticeable decrease in Cardano’s daily active addresses, dropping to 29,000 as of June 20. The decline continued, with active addresses reducing further to 15,000, indicating a decrease in network usage and participation. Despite a drop in transaction volume, there has been a slight revival, with the latest figures showing a transaction volume of $280 million, up from $202 million on June 23.
Investor Insights
Based on the current data, investors can draw several actionable insights:
- Monitor ADA prices closely if purchased at higher levels to avoid further losses.
- Consider the breakeven point of $0.39 for a potential sell-off opportunity.
- Evaluate the decline in active addresses as a potential indicator of reduced network utility.
- Track transaction volumes for signs of market recovery or further decline.
As of now, ADA is trading at $0.3737, having dropped over 2% in the last 24 hours. Investors continue to face challenges as Cardano’s market conditions remain volatile.