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Only 35% of Cardano (ADA) Holders In Profit, Suggests Buying Opportunity

2 mins
Updated by Harsh Notariya
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In Brief

  • Only 35% of Cardano holders are currently 'in the money,' making a profit.
  • 61.3% of ADA holders are 'out of the money,' suggesting undervaluation.
  • Comparative data shows ADA's profitability lower than BTC, TRX, DOGE, ETH.
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A recent analysis by IntoTheBlock reveals that only 35% of Cardano (ADA) holders are currently profiting from their investments, a stark contrast to other major cryptocurrencies.

The shifting sands of investor sentiment and market conditions constantly affect the cryptocurrency market.

Is Cardano (ADA) Presenting a Buying Opportunity?

Comparative data shows that more than 86% of Bitcoin (BTC) holders and over 85% of Tron (TRX) investors are enjoying profits. Even Dogecoin (DOGE) and Ethereum (ETH) have higher percentages, with 83% and 81% of their holders ‘in the money’, respectively. ‘

‘In the money’ refers to situations where the asset’s purchase price is below its current market value, yielding a profit for the holder. Conversely, being ‘out of the money’ means the purchase price was higher than the current price, resulting in an unrealized loss.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

Cardano Global In/Out of the Money
Cardano Global In/Out of the Money. Source: IntoTheBlock

Cardano’s low percentage of profitable wallets raises eyebrows among market analysts and investors alike. Moreover, the analysis suggests a potential undervaluation of ADA, as a significant 61.3% of its holders are out of the money.

This indicates a reluctance to sell at a loss, reducing the available supply on the market.

Historically, Cardano’s price peaked in the second half of 2021 and started reversing when over 92% of ADA holders were in the money. This high percentage can often lead to profit booking, which might cause the price to drop as investors cash out.

However, the current scenario, where most holders are unprofitable, could spell a different market dynamic.

Conversely, investors unprofitable over an extended period may also lose interest or hesitate to increase their holdings, fearing continued losses. If Cardano’s price were to approach the break-even point, many of these holders might cash out.

For example, between $0.59 and $0.72, 6.78 billion ADA was purchased by over 367,000 wallet addresses. This price range could likely see increased activity as holders attempt to recover their initial investments.

“ADA stands out with only 35% of holders in profit. But is this an opportunity or a warning sign?” IntoTheBlock asks its followers.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

Some view the low percentage of holders in profit as a sign of ADA’s undervaluation and potential for growth. In contrast, others might see it as a red flag indicating a lack of confidence in Cardano’s future price appreciation.

“Can ADA ever rise again?” IntoTheBlock ambassador Felix says.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Harsh Notariya
Harsh Notariya is a journalist at BeInCrypto, who writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created educational reports on...