- Cardano’s price was hovering around the key level of $0.33 at the time of writing
- Only 16% of all addresses seemed to make a profit
Cardano (ADA) price may be at a crossroads as the altcoin tests key support levels on the charts. At the time of writing, Cardano was trading at $0.33 – a price level that has historically acted as both support and resistance.
Although the market appeared to recover, Cardano’s price action has remained sluggish. In fact, the altcoin has been stuck in its press time range for a while now, with bulls also unable to muster enough buying pressure.
Source: TradingView
This sluggish performance is also reflected in the asset’s profitability figures. According to IntoTheBlock data, only 15.85% of Cardano addresses own ‘In The Money’. This implies that there are few strong hands holding the asset, potentially limiting the upside price momentum.
Most Cardano holders are calm…
Likewise, the same data showed that almost 79.88% of addresses ran out of money, meaning they bought ADA at a loss. As prices rise, this high percentage of underwater positions could lead to a sell-off as holders would look to exit at their breakeven point.
Source: IntoTheBlock
Looking at Cardano’s liquidation data, there appeared to be expected volatility on the cards, even though the market seemed dull. It also revealed that several liquidation levels were centered around the $0.35 level on the charts.
If this level can be decisively overcome, it would lead to cascades of liquidations, fueling a greater upward movement in prices. However, such an event may face hurdles from sellers looking to recoup their losses. Especially considering the low profitable address percentage.
Source: Coinglass
Can the Bulls make a comeback?
Hence the question: can 16% profitable addresses trigger a significant bull rally? Despite being a minority, this group may have the money and confidence needed to boost prices positively.
For Cardano to make any meaningful recovery, it will need to convincingly break above the $0.35 resistance level. This will not only lead to potential liquidations. but also make more addresses profitable, reducing pressure on the sales side.
