Cardano (ADA), which had lost momentum, has now fallen back into a downtrend. The downtrend quickly pushed the cryptocurrency towards $1. Cardano investors are now facing dire consequences. Many of these investors are now in dire straits and have seen their portfolios fall into red at current prices, leading to massive losses.
Cardano holders in the Red
Cardano, like many other market participants has experienced a decline in its value over the past few days. It is due to the general slowing of market momentum. Not all holders of digital assets in the space are as fortunate as those holding ADA tokens. ADA token holders tend to be in the losing zone, contrary to other investors in leading cryptocurrencies.
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Currently, 25% of all ADA investors have made a profit. The majority of those in profit have been holders who held tokens for at least one year. Mid-term holders seem to bear the brunt. They are holders that have had their tokens in hand for between one and twelve months. They make up 76%, which is why it’s not surprising that they are a significant portion of those who invest in the loss.
67% of ADA Holders in Loss | Source: IntoTheBlock
According to data from IntoTheBlock, 67% of ADA investors are currently losing money. Only 9% of all ADA investor are currently in neutral territory. This means they bought the tokens at their current price.
ADA Turns Bearish
Cardano once again has fallen into bearish territory. Although this digital asset had begun a bullish trend, it has not been able to keep that momentum. The long-term outlook for this digital asset is now grimmer than we expected.
ADA holds onto its shorter-term counterparts despite falling below their 100- and 200-day moving mean. It has already fallen below the 20-day moving mean, which is a negative sign for future buy/sell pressures for digital assets.
Source: ADAUSD on TradingView.com| Source: ADAUSD on TradingView.com
The indicator have switched to long-term selling, which will see asset prices continue to fall as time passes. It must register above $1.171, the current significant resistance level. This is an easy target if the digital currency can regain some of its momentum from last Wednesday. This is the $1.24 resistance which can be beaten hard for the asset. This is because ADA is still a seller’s market.
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ADA still has the potential to reverse the trend, even though it is trading higher than the 50-day moving mean. However, buyers must increase their activity.
Featured image taken from CryptoTicker. Also, chart from IntoTheBlock.com and TradingView.com