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Will Cardano regain large holders’ trust as gains decline

2min Read

Here’s what could remain of ADA since offering gains to long-term holders was not forthcoming.

Will Cardano regain large holders' trust as gains decline

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  • The number of large holders decreased amid the concerning decline in the token value.
  • Market participants were beginning to trust a bullish outlook as indicators slightly supported the sentiment.

Cardano’s [ADA] 41.66% 365-day decrease could be the least of holders’ worries despite its strides in development activity. Besides that, and its 90.78% drawdown from its All-Time High (ATH), the number of ADA large holders has reduced.

Is your portfolio green? Check the Cardano Profit Calculator

Hopes on the long haul

According to IntoTheBlock, ADA’s concentration by large holders had fallen to 32%. This decline suggests that whales’ confidence in the token could be withering. This was especially as 30.15% of large transactions have produced bearish outcomes in recent times.

ADA holders in profit and loss

Source: IntoTheBlock

Expectedly, the price performance has ensured that only 8% of ADA holders were in gains. With only 2% at the breakeven point, 88% have had to deal with losses. So, what hope do current holders have?

Well, the four-hour ADA/USD chart showed that the token could continue to linger in the bearish state in the short term. This was because the 50 EMA (yellow), despite being close to the 20 EMA (blue) was above the latter.

Usually, a circumstance of this nature indicates a possible bearish dominance. But for holders who still seem committed to ADA, respite could be on the way. This was due to the fact the 200 EMA (purple) was above the 50 EMA.

Typically, this signals that ADA has the tendency to establish a new uptrend, which could, in turn, translate to a sustained rally. 

Meanwhile, the Know Sure Thing (KST) indicator showed that ADA’s downward momentum could be growing. Thus, opening long positions at the token’s press time price could mean preferring less profitable trades.

Cardano [ADA] price action

Source: TradingView

Revival may not be far off

Despite ADA’s underwhelming price action, Santiment rated Cardano as one of the projects with impressive traction lately. 

Furthermore, the on-chain analytic platform also showed that ADA’s weighted sentiment has improved. Up until 9 June, the weighted sentiment was -3.057. 

Weighted sentiment takes into account the unique commentary about a project on social platforms. When the metric increases, it means optimism has returned, as was the case with ADA.

Read Cardano’s [ADA] Price Prediction 2023-2024

But when it reduces, it means that the average comments were pessimistic. Another metric worthy of assessment was the funding rate on Binance. Funding rates are periodic amounts of an asset paid between long and short traders based on the difference between perpetual contracts.

At press time, ADA’s funding rate was -0.006%. This usually occurs when the average margin trend is negative. Therefore, traders holding positions opposite to the prevailing market trend receive a fee from those aligned with the trend.

ADA funding rate and weighted sentiment

Source: Santiment


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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