Logo
Cardano Ecosystem

Elevenews

08/14/2023

·

19 views


Cardano Investors Continue to Accumulate ADA Despite the Decrease in Token Value - ELEVENEWS

After the significant token distribution between February 2021 and May 2022, Cardano investors holding more than 100,000 ADA tokens have started accumulating the cryptocurrency asset again. However, despite...

Cardano Investors Continue to Accumulate ADA Despite the Decrease in Token Value - ELEVENEWS

After the significant token distribution between February 2021 and May 2022, Cardano investors holding more than 100,000 ADA tokens have started accumulating the cryptocurrency asset again. However, despite this important development, most Cardano investors are still in the red, and daily investors continue to sell ADA.

Investors Continue to Buy ADA

According to Santiment, these investors continue to buy ADA despite the steady decline in the altcoin’s value, but the cryptocurrency asset’s market value has decreased by 35% in the last four months. At the time of writing, Cardano’s market value was $10 billion, ranking it as the ninth-largest cryptocurrency asset in terms of market value.

The token price has also decreased by 69% since the investor group started accumulating the token. In May 2022, ADA was trading above $0.7. Currently, it is trading below $0.3.

ADA Investors Unable to Make Profit

On-chain data analysis of ADA’s profitability as a digital asset last year revealed that the majority of investors have been unable to make a profit since April 2022. According to Santiment, the Market Value to Realized Value (MVRV) ratio of the token turned negative on April 7, 2022, and remained below the median line.

This metric tracks the ratio between the current price of an asset and the average price at which each token was purchased. A high MVRV ratio indicates that the asset is overvalued, while a low MVRV ratio indicates that its value is low. At the time of writing, this ratio was -51.36%, meaning that more than half of all investors would incur losses if they sold ADA at its current value.

Additionally, data from IntoTheBlock revealed that 3.94 million addresses holding ADA are “out of the money.” This means that investors are currently holding the altcoin at a loss. This figure represents 89% of all token holders, while only 10.26% of all ADA addresses holding the token are in profit.

With further price drops, daily investors continue to sell ADA. The Relative Strength Index (RSI) was 42.99, and the Money Flow Index (MFI) was at 23.67, almost at oversold levels, according to press time.

Both fundamental indicators have shown a momentum shift from the buyer side to the seller side since the beginning of August, staying below their centerlines. Sellers were dominating the ADA market with the positive directional index (green) below the negative directional index (red) at the time of writing.

Source

Join our Telegram Channel https://t.me/elevenews

AD

NFTxLV - Sep 29 - Oct 1, 2023 | Las Vegas Convention Center

Discover the intersection of art and blockchain with NFTxLV, where the world of NFTs collides with the allure of Las Vegas, creating an unforgettable experience for collectors, artists, and enthusiasts alike.GET TICKETS!


Read Original Article on Elevenews

ORIGINAL SOURCE

https://elevenews.com/2023/08/14/cardano...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


NFTxLV | Sep 29 - Oct 1, 2023 | Las Vegas Convention Center

More from Elevenews

See more
Cardano Price Prediction: ADA Could See a Significant Drop to 400 Satoshi, According to Analyst Benjamin Cowen - ELEVENEWS
Elevenews
Cardano Price Prediction: ADA Could See a Significant Drop to 400 Satoshi, According to Analyst Benjamin Cowen - ELEVENEWS

yesterday at 9:42 AM

·

2 views

Related News

See more
NFTxLV | Sep 29 - Oct 1, 2023 | Las Vegas Convention Center

Featured News

See more



    DEFAULTENGLISH (EN)SPANISH (ES)RUSSIAN (RU)GERMAN (DE)ITALIAN (IT)POLISH (PL)HUNGARIAN (HU)JAPANESE (JA)THAI (TH)ARABIC (AR)VIETNAMESE (VI)PERSIAN (FA)GREEK (EL)INDONESIAN (ID)ROMANIAN (RO)KOREAN (KO)FRENCH (FR)CZECH (CS)PORTUGUESE (PT)TURKISH (TR)