Despite the recent market surge, only 35% of Cardano (ADA) holders are making profits, significantly lower than other major protocols. Analytics firm IntoTheBlock has observed that 65% of stockholders are facing losses in their holdings. However, within this group, approximately 57% are experiencing “real” losses.
To provide further clarity, IntoTheBlock categorizes global money flow in addresses based on whether they are making money, breaking even, or losing money at the current price. According to this indicator, 1.59 million addresses, or 35.71% of holders, are in the money. A total of 319,430 addresses, or 7.19% of owners, are in profit, with an average of $0.376.
Understanding the percentage of addresses losing money in their positions can help users gauge selling pressure at a specific price range. The price range in which the majority of users are losing money will face significant selling pressure, as many of these addresses will want to sell when the market price approaches their average cost and breakeven point. This acts as a barrier to price increases at those levels.
In this regard, data from IntoTheBlock reveals a key resistance at $0.38, with 7.19 billion ADA present at this level. According to IntoTheBlock, surpassing this level could save approximately 65% of Cardano holders from losses or even in their positions. Breaking through this level may reduce resistance, potentially boosting profits for holders.
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