- The price of ADA is expected to reach $0.50, which would reduce the percentage of holders incurring losses to less than 55%.
- Whale concentration has exceeded 2021 levels, suggesting that prices could approach $3 later.
Cardano’s surprising move [ADA] It was the best performing asset among the top 10 cryptocurrencies. At the time of writing, ADA is trading at $0.48, which means it has gained 7.28% in the past 24 hours.
AMBCrypto previously reported that Cardano could soon fall out of the top 10 by market capitalization. However, the token seemed to have other plans as its price helped solidify its position in the rankings.
However, one thing could change. It is the percentage of holders of funds. At the time of writing, only 40% of ADA holders were profitable, according to IntoTheBlock data.
Meanwhile, 55% of token holders were “out of money”.
Source: Into the Block
Many addresses are ready to provide support
However, this ratio may change if the price of Cardano continues to rise. For that to happen, the price of the token needs to reach the average price of $0.49.
At this point, 65,590 addresses I scooped it up 792.58 million tokens when the price was between $0.48 and $0.50.
Based on current market sentiment, this large cluster of addresses is likely to support the token. However, traders may need to be careful.
This is because if the token reaches its average cost base, there could be selling pressure due to concentrated accumulation. In this case, the ADA price could be rejected at $0.50.
Looking at the on-chain situation, ADA may overcome the potential resistance level at $0.50. One of the reasons was Cardano’s volume.
AMBCrypto uses Santiment to analyze Cardano’s volume spikes It rose to a weekly high of $460.77 million. The increase in volume indicates growing interest in ADA.
Furthermore, if volume continues to increase along with price, the predicted rally to $0.50 could materialize in the short term.
Source: Santiment
If that happens, it could increase confidence in the potential of the token. As such, $0.50 could be new support for ADA while the token aims for higher values.
Can ADA reach $3 again?
Moreover, the long-term potential of this token looks promising. But that is unless, as mentioned in several corners, the current market cycle reaches its peak.
AMBCrypto was also able to corroborate this by confirming this. historical concentration. At the time of writing, the retail industry accounted for 71.91% of the total supply of ADA.
Investors with a moderate average position in the cryptocurrency held 19.47% of the supply. Finally, ADA Whale owned 6.82%.
read cardano book [ADA] Price prediction for 2024-2025
The last time Whale accounted for nearly 8% of Cardano’s total circulation was in 2021.
Source: Into the Block
It was also around this time that the price of ADA reached $3.09. By 2022, the bear market forced most of these whales to liquidate their assets. However, if large accumulations increase, ADA may try to revisit its peak.
