The on-chain analytics company IntoTheBlock notes that just 35% of ADA investors are profitable, which is far less than other key protocols, even with the recent market rebound.
This suggests that the shares of 65% of holders are losing money. Of this group, 57% of holders may really be “truly” losing money.
It might be essential to dissect this more for the purpose of clarity. Based on whether addresses are making money (in the money), breaking even (at the money), or losing money (out of the money) on their positions at the current price, IntoTheBlock’s Global In/Out of the Money classifies addresses.
https://x.com/intotheblock/status/1730171516560543987?s=20
This indication shows that 2.54 million addresses, or 57.10% of holders, are in losses or out of money, while 1.59 million addresses, or 35.71% of holders, are profitable or in the black. 319,430 addresses, or 7.19% of holders, are at the money. At the current price of $0.376 for ADA, this is.
Users may be better able to discern the selling pressure at a certain price range if they have a better understanding of the percentage of addresses that are losing money on their positions.
Because many of these addresses will want to sell anytime the market price reaches their average cost and break-even point on their holdings, there will be a lot of selling pressure in a price range where the majority of users are losing money. This will act as a deterrent to additional price rises at those points.
According to IntoTheBlock’s on-chain statistics, a critical resistance may be seen at $0.38, where 7.19 billion ADA have been bought.
Approximately 65% of Cardano holders who are in losses or even on their holdings would be able to rescue their situation if this level is cleared, according to IntoTheBlock. This is due to the possibility that breaking through this barrier may lessen resistance, which could increase holder profits.
Should the $0.38 barrier be broken, ADA may go for the $0.41 mark. At the time of writing, ADA was down 2.05% over the previous day to $0.376, reflecting broader market falls.
