Cardano: Only 30% ADA holders in profit – What happens next?

• 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 levels.

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The chart shows that each time ADA attempts to recover, it faces resistance and fails to establish a new high, conforming instead to lower peaks, which outline the double-top patterns.

Interestingly, the RSI oscillates between 50 and 60, indicating a neutral market with a slight lean toward bullish sentiment.