Cardano holders’ profit ratio drops to 35%, Is this a warning bell?

Amidst the struggling cryptocurrency market, the recent data from the on-chain analytic firm Intotheblock has garnered everyone’s attention. On April 25, 2024, Intotheblock made a post on X (previously Twitter) stating that in this massive market downturn, the profitability of Cardano holders has decreased. Currently, it stands at only 35%, whereas holders of Bitcoin, Tron, Dogecoin, and Ethereum are above 80%, despite the significant drop. 

ADA holder’s profitability plunges to 35%

However, the massive decline in profitability raises the question of whether it presents an opportunity or a serious concern. Additionally, crypto enthusiasts are pondering whether ADA can ever rise again. These inquiries from investors reflect the fear in the market. The analytic firm also highlighted that Bitcoin remains the king.

The chart below shows the percentage of holders in profit on several top layer 1 networks 👇

Bitcoin remains king, with $TRX being a close second. $DOGE and $ETH also have the vast majority of holders in profit. $ADA stands out with only 35% of holders in profit. But is this… pic.twitter.com/x9YwfuNIN4

— IntoTheBlock (@intotheblock) April 24, 2024

Cardano (ADA) technical analysis and key levels

According to expert technical analysis, ADA is still bullish as long as it is trading above $0.42. If the Cardano (ADA) candle on a daily timeframe closes below the $0.42 level, there is a high possibility of a massive fall. Moreover, analyzing Cardano (ADA) on a weekly timeframe reveals that it is at a crucial level and has been supported by the 200 EMA for the past two weeks. If any weekly candle closes below the $0.44 level, we may witness a significant sell-off. Currently, there are no signs of bullishness, and ADA might take a month to recover from this recent fall.

Due to today’s massive price fall, ADA is currently trading near $0.47, experiencing a significant price drop of over 5.5% in the last 24 hours. Looking at ADA’s performance over a longer period, in the last 7 days, ADA experienced nearly 5% upside momentum. However, in the last 30 days, due to the release of the United States CPI (Consumer Price Index) data and geopolitical tensions, it experienced a massive nearly 30% downside momentum. During this period, ADA also reached a low of $40.41.

Currently, the overall cryptocurrency market has experienced a massive fall of over 5%, with the 24-hour trading volume surging by 17%. This surge in trading volume highlights investors’ and traders’ interest in this market. Meanwhile, other top cryptocurrencies like Bitcoin, Ethereum, Solana, XRP, and others have also experienced falls of over 4%, 5%, 8%, and 5%, respectively.