Opportunity or warning sign? Only 35% of Cardano holders in profit

Despite the recent bull market in the cryptocurrency sector resulting in substantial profits for investors in various crypto assets, Cardano (ADA) remains an enigma, with only 35% of its holders experiencing gains – leaving traders pondering whether this presents an opportunity or a cautionary signal.

Specifically, Cardano stands out among several leading Layer 1 networks, including Bitcoin (BTC), Tron (TRX), Dogecoin (DOGE), Ethereum (ETH), and Avalanche (AVAX), with just over a third of its holders in profit, according to recent data shared by blockchain analytics platform IntoTheBlock on April 24.

Holders' profitability on top Layer 1 networks. Source: IntoTheBlock

As blockchain platform analysts explained, "Bitcoin remains king," with Tron "being a close second," while Dogecoin and Ethereum "also have the vast majority of holders in profit," making Cardano a curious exception to recent trends and a profitability conundrum.

Cardano (ADA) Price Analysis

Cardano has emerged as one of the "losers" among crypto market assets this year, having declined over 20% since the year's commencement, while the others on the aforementioned list have experienced gains – with the exception of Avalanche, which has declined 9.36% during this period.

Furthermore, it has witnessed declines on its daily and monthly charts, dropping 6.42% in the last 24 hours and losing a more significant 32.01% over the previous 30 days, albeit accumulating a 3.32% gain over the past week, and currently trading at $0.4637.

Cardano price 7-day chart. Source: Finbold

Meanwhile, such price action could represent an opportunity for investors seeking to expand their portfolios, as Cardano has previously exhibited a critically low Market Value to Realized Value (MVRV) ratio, which crypto expert Ali Matinez has identified as a bullish indicator for a "significant rebound."

Cardano MVRV ratio analysis. Source: Ali Martinez

In conclusion, ADA could experience further declines or prepare for a potential surge if the renowned crypto trading expert's assessment proves accurate. However, the cryptocurrency industry is prone to abrupt shifts in trends, necessitating thorough research and risk assessment.

Disclaimer: The content on this site should not be construed as investment advice. Investing is speculative. Your capital is at risk when investing.

Source: https://thebittimes.com/opportunity-or-warning-sign-only-35-of-cardano-holders-in-profit-tbt86525.html