The Harsh Reality for Cardano Holders

The Harsh Reality for Cardano Holders

The Cardano market recovery has failed to bring relief to a large number of ADA holders who are still nursing losses. Data from IntoTheBlock paints a grim picture, showing that Cardano is the worst performer in terms of profitability among the top 10 largest cryptocurrencies by market cap. This has left holders and long-term believers disappointed and questioning the future prospects of their investments.

Despite the overall market recovery, Cardano’s profitability has remained low since the market crash of 2022. The majority of investors continue to find themselves underwater on their investments as the ADA price struggles to follow the positive trend in the market. Key resistances at $0.6 and $0.7 have proven insurmountable, further adding to the woes of Cardano holders.

Data from IntoTheBlock reveals the stark reality for Cardano holders, with only 25% of all holders currently seeing any profit. In contrast, a staggering 66% are facing losses, while the remaining 9% are at a neutral position – neither profiting nor losing. With approximately 4.5 million Cardano holders, only 1.11 million are experiencing any form of profit, leaving a significant portion of 2.96 million holders in losses.

A comparison with other large-cap cryptocurrencies highlights the extent of Cardano’s underperformance. Bitcoin, the largest cryptocurrency, boasts 89% of its holders in profit, with Ethereum also showing strong profitability metrics at 82%. Even Dogecoin, often considered a meme coin, outperforms Cardano with 75% of its wallets in profit. This stark difference further emphasizes the struggles faced by Cardano holders in the current market landscape.

As the ADA price continues to face challenges and struggles to break key resistance levels, the profitability gap for Cardano holders is poised to widen further. If the price drops below $0.35, an additional 138,000 addresses will fall into losses, exacerbating the existing situation. Conversely, a successful move above $0.47 could bring back 85,590 addresses into profit, offering a glimmer of hope for some holders.

At the time of writing, the ADA price is hovering around $0.42, reflecting a 4.4% decline in the last day. Despite this short-term setback, the weekly chart shows a 5.29% gain after a recent recovery. However, the overall trend remains uncertain, and Cardano holders are bracing themselves for potential challenges ahead.

The harsh reality for Cardano holders is a sobering reminder of the volatile and unpredictable nature of the cryptocurrency market. While some investors continue to hold out hope for a turnaround, the current profitability landscape for Cardano paints a challenging picture. As the market dynamics evolve, holders must carefully assess their positions and make informed decisions to navigate the turbulent waters of the crypto space.

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