11,960 Cardano Addresses in Loss: Will it Trigger More Sell-Offs? – CryptoMode

As the number of Cardano (ADA) addresses in loss surge, there are concerns about more potential sell-offs.

According to data from IntoTheBlock, daily active addresses (DAA) in loss for ADA spiked from 1,680 to 11,960 over the past week. The rapid increase in these addresses could be a precursor to selling pressure, as some investors could choose to sell their holdings at a loss.

ADA Daily Active Addresses in loss | Source: IntoTheBlock

The price of Cardano has struggled since trading at a price of $0.807 on Mar. 12. The asset has since declined by 15.4% over the last 30 days, and its current price is close to a one-year low of $0.29.

Current Coinmarketcap data shows that the coin is trading around $0.33 with a market cap of $11.8 billion. Its daily trading volume has seen a 16.17% increase, and it’s now at $198.96 million.

ADA 24-Hour Price Chart. | Source: Coinmarketcap

Cardano Holders in Profit

On-chain indicators suggest Cardano holders might be reacting to market conditions, particularly as the upcoming US presidential election could heighten volatility across digital assets.

At this price level, only 17% of ADA holders are in profit, while 3.6% are close to their break-even point. The remaining addresses are holding Cardano at a loss, adding to the potential selling pressure amid mounting bearish sentiments.

Moreover, data from Tokenomist (a top tokenomics platform) revealed that 18.53 million ADA tokens, worth approximately $6.15 million, entered circulation on Oct. 27 following a token unlock event. It also revealed that another token unlock is set for Nov. 1 and would release another 18.53 million ADA into circulation.

Although these releases are small relative to ADA’s overall market cap, they contribute to investors’ cautious outlook. Meanwhile, ADA remains 89% below its all-time high of $3.1, achieved on Sept. 2, 2021.

ADA Token Unlock Events. | Source: Tokenomist

New Partnership Fail to Lift Bearish Sentiment

Recently, Cardano announced a collaboration with BitcoinOS to integrate Grail Bridge, allowing the transfer of Bitcoin liquidity across networks without intermediaries using zero-knowledge proofs. The bridge, which accesses Bitcoin’s $1.3 trillion liquidity, aims to enhance interoperability for ADA.

However, the announcement has yet to lift ADA’s market performance. With ADA’s circulating supply now at 34.99 billion out of a maximum of 45 billion tokens, some analysts suggest that market conditions may continue to exert downward pressure on its price unless demand for the token substantially increases.