Get Ready: Cardano could soon see 50% of ADA holders in the money
In a recent development, Cardano (ADA) emerged as the best-performing asset among the top 10 cryptocurrencies. The current price of ADA stands at $0.48, reflecting a 7.28% surge over the past 24 hours.
Earlier, there were speculations that Cardano might drop out of the top 10 based on market cap. However, the token’s price movement has solidified its position in the rankings.
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One crucial factor to consider is the percentage of ADA holders in profit. Presently, data from IntoTheBlock indicates that only 40% of ADA holders are in profit, while 55% are “out of the money.”
Source: IntoTheBlock
Many addresses are ready to provide support
It’s worth noting that the dynamics could shift if Cardano’s price continues to rise. For this to occur, the token’s price needs to reach an average of $0.49.
At the moment, 65,590 addresses hold 792.58 million tokens, acquired at prices ranging from $0.48 to $0.50. This significant accumulation could potentially provide support for the token. However, traders need to remain cautious, as this concentration of accumulation may generate selling pressure if the token reaches the average cost basis, potentially leading to a price rejection at $0.50.
Despite this, on-chain indicators suggest that ADA might overcome the potential resistance at $0.50, with Cardano’s volume reaching a weekly high of $460.77 million, indicating growing interest in ADA.
If the volume continues to rise alongside the price, the anticipated move to $0.50 could materialize in the near term, potentially boosting confidence in the token’s potential and establishing $0.50 as a new support level as ADA aims for a higher valuation.
Source: Santiment
Can ADA reach $3 again?
Looking ahead, the long-term outlook for ADA appears promising, provided the current market cycle does not reach its peak. Retail investors currently hold 71.91% of the total ADA supply, while investors with a reasonably average position in the crypto hold 19.47% of the supply.
Source: IntoTheBlock
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ADA whales account for 6.82% of the supply. Notably, the last time whales held a similar proportion of the total Cardano circulation was in 2021, coinciding with ADA’s price hitting $3.09. With the increasing accumulation, ADA may attempt to revisit this peak.
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Michael Onche: Crypto aficionado and seasoned analyst. With a keen eye for market trends and a passion for blockchain technology, he deciphers the intricacies of cryptocurrency with precision. Michael’s expertise and insightful content make him a trusted guide for navigating the dynamic world of digital assets.
