After yesterday’s rollercoaster, there has been some recent reprieve on the cryptocurrency market, and right now, the price of the Cardano token, ADA, is up a small 1.2%. However, a potential barrier that could soon stand in the way of ADA’s upward trajectory casts doubt on a recent price increase.
According to statistics released by IntoTheBlock, there is a big barrier impeding the price rise of ADA. A total of four billion ADA, which are presently worth between $0.282 and $0.326, are still stranded in an unprofitable situation. These holders will have the option to sell their tokens at breakeven or even at a little profit once the price passes this barrier.
If ADA succeeds in getting over this significant obstacle, more pressure is anticipated to mount. Given that a startling 76% of Cardano’s token sale is losing money worldwide, this result shouldn’t be shocking. Surprisingly, just 12.2% of ADA holders are now making money.
Closer look
Analysing the data further reveals that 686,110 addresses, representing the largest group of Cardano token holders suffering losses, purchased ADA at rates ranging from $1.62 to $2.97. Additionally, a massive 8.85 billion ADA tokens, or the majority of the tokens now operating at a loss, were acquired between $0.375 and $0.43.
This four billion ADA obstacle marks a pivotal point in the price trend of Cardano. If it is unable to cross this barrier, downward pressure might continue, raising more worries for people who possess cryptocurrencies.
