The post Cardano: Only 30% ADA holders in profit – What happens next? appeared on BitcoinEthereumNews.com.

ADA’s price trended bearishly, with consistent lower highs and numerous double-top formations. A tight Bollinger Bands and a flat MACD point to low volatility. Despite weak performance over the past month, Cardano [ADA] showed signs of strong support, as on-chain data indicates. Moreover, the network has seen an uptick in total value locked (TVL) in DeFi applications, reaching levels twice its peak during the 2021 bull market​. IntoTheBlock data shows that only 30% of ADA holders are currently in profit, which means a significant portion of the market is experiencing losses. Source: IntoTheBlock With 28% of ADA held by large investors, the token shows a moderately high level of whale control, which might influence price stability and potential manipulation risks. Of ADA’s large scale investors Over the past week, the enormous volume of $34.46 billion in large transactions highlights massive institutional or large-scale investor movements, which could be both inflows and outflows, reflecting active high-stake engagements in ADA. ADA’s price showed a declining trend at press time, which was particularly noticeable from the consistent lower highs from the start of June. This trend aligned with the bearish sentiment. Source: TradingView The Bollinger Bands on this chart are relatively tight, often suggesting low volatility. ADA’s price is oscillating closely around the middle band, showing a lack of major bullish or bearish momentum, consistent with a consolidation phase. The Moving Average Convergence Divergence (MACD) was flatlining at zero, reinforcing the bands’ sentiment. There were numerous double-top formations across the chart below, typically recognized as bearish reversal indicators. Source: TradingView Moreover, ADA’s price was below all the moving averages, which can be considered a bearish signal. When the price is below these lines, they generally suggest that the overall momentum is downward. ADA’s price has fluctuated between higher resistance points and lower support…

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Filed under: News - @ June 17, 2024 7:18 pm