Cardano (ADA) Dibayangi Nasib Suram saat Whale dan Harganya Kian Lesu

Cardano (ADA) Faces Challenges Amidst Market Downturn

Cardano (ADA), a prominent layer-1 blockchain network, is navigating a challenging period marked by significant market value declines and a drop in its cryptocurrency rankings. Recently, ADA slipped to the tenth position in terms of market capitalization after experiencing a steep price correction.

Over the past month, the price of ADA has plummeted by approximately 28 percent and has registered a near 22 percent loss since the beginning of the year, as reported by CoinMarketCap. While this decline reflects broader trends in the cryptocurrency market, it also highlights specific challenges facing Cardano.

Profitability Comparison with Other Cryptocurrencies

According to Coin Edition, recent insights from IntoTheBlock indicate that only around 35 percent of Cardano (ADA) holders are currently in profit. This figure stands in stark contrast to the profitability rates of other leading cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), where 86 percent and 81 percent of holders, respectively, are seeing gains.

This disparity has amplified concerns regarding Cardano's demand and appeal, particularly as the number of investors experiencing losses grows.

ADA's market performance has also impacted its standing in comparison to other cryptocurrencies. Over the past month, ADA has been overtaken in terms of market value by Dogecoin (DOGE) and Toncoin (TON).

Furthermore, the average unrealized loss across the network has widened to 15.71 percent, implying that if ADA holders were to sell their assets at the current market price, they would incur an average loss of 15.71 percent. This metric underscores the loss of value and investor confidence in the asset.

Declining On-Chain Activity

ADA's market value decline has been compounded by a noticeable drop in on-chain activity. Data from Santiment reveals that daily active addresses on the Cardano network have plummeted from over 70,000 at their peak to around 30,000 currently.

This decrease in the number of active addresses is a clear indicator of declining engagement and transaction volume, which can further impact the network's vitality and attractiveness to new users.

Despite these setbacks, it is important to consider the cyclical nature of cryptocurrencies and the potential for ADA's recovery. Historical trends suggest that ADA may enter a super cycle in 2025, potentially propelling it to new highs.

This projection is based on patterns observed following significant events in the cryptocurrency space, such as the Bitcoin halving in 2020.

However, investor sentiment towards ADA remains tepid at present. Analysis from Santiment reveals that large-scale holders, or whales, have become net sellers, consistently reducing their holdings over the past few months.

This trend indicates a lack of substantial buying interest even as prices decline, raising questions about the long-term commitment of large investors to the network.

ADA/USD Price Action

Focusing on the ADA/USD price action, the 4-hour chart reflects the prevailing bearish sentiment. After hitting a crucial price level on April 12, ADA experienced a sharp 32.15 percent decline.

Currently, the price is trading around the 38.20 percent Fibonacci retracement level. If ADA can close above this level, it could signal a potential reversal of fortune, potentially pushing it towards the 50 percent Fibonacci level and above existing resistance levels.

Conversely, if ADA continues to move lower and closes below the 38.20 percent Fibonacci level, it could indicate further downside. Such a move could see it retesting lower support levels.

A decisive break below this support could lead to further downward momentum, aligning with the bearish target.