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Cardano (ADA) Holders Facing Losses Amid Market Volatility
In recent market trends, Cardano (ADA) has experienced some of the highest percentages of holders facing losses among leading layer-1 (L1) networks, sparking concerns about near-term demand. Despite being the 10th largest cryptocurrency by market capitalization, ADA has seen a decline in its value, dropping by 28% over the past month and nearly 22% year-to-date (YTD).
Losses Among Early Adopters of ADA
Early adopters of ADA are now grappling with losses, as a significant number of holders are reporting negative returns. Data from IntoTheBlock, an on-chain analysis company, reveals that 35% of ADA holders are awaiting positive returns, a lower percentage compared to Bitcoin (BTC) and Ethereum (ETH) holders reporting profitable positions at 86% and 81%, respectively.
The sudden increase in loss percentages has raised concerns about immediate demand and ADA’s overall market stability. Despite its position as a major player in the crypto space, ADA’s price charts have been sluggish, contributing to its declining market position.
Market Volatility and ADA Price Forecast
AMBCrypto’s data from Sentiments metrics indicates that ADA peaked at $0.77 in mid-May before entering a downtrend, resulting in an average unrealized loss of 15.71% across the network. This volatility in ADA’s market performance presents challenges for investors, highlighting the unpredictable nature of the market.
According to the ADA price forecast, owners of ADA are facing an average 15.71% drop in price if they sell at the current exchange rate. This has also led to the Cardano wallet crash, with daily active addresses on the blockchain dropping from 70,000 at peak time to just 30,000 currently.
Investor Sentiment and Market Outlook
While some analysts see the current reduced prices and potential for profits as an opportunity to buy more ADA, sentiment data compiled by AMBCrypto paints a different picture. Many ADA investors are hesitant to purchase cryptocurrency at lower market prices, with large owners losing market share in the past 2-3 months, reflecting a sentiment of a crashing market.
Despite these challenges, positive ADA holders remain optimistic about a potential supercycle. Experts predict that ADA could surpass its all-time peak in 2025, drawing parallels to its performance following the halving event in 2020.
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