Cardano (ADA) continues to create waves in the cryptocurrency market towards the end of the month after a meteoric climb of over 50% since the beginning of the year. The cryptocurrency, which ranks seventh in terms of market value, briefly surpassed $0.3990 on Sunday before retreating on Monday.
Cardano’s increase over the last month coincides with a broader cryptocurrency market rebound, as investors continue to hold out optimism that the gloomy global economic statistics will eventually improve.
As a result, an outpouring of capital has been coming into ADA purchases, as investors anticipate that the debut would boost the price of the asset. Between $0.365 and $0.376 on Sunday night, crypto analyst Ali saw that almost 92,000 addresses had acquired about 4.39 billion ADA valued at approximately $1.72 billion. As long as this demand wall remains, there is a considerable likelihood that ADA will hit new highs, the analyst observed.
However, in a following tweet, Ali published a graphic from Santiment indicating that ADA’s recent spike has also prompted whales seeking exit liquidity to sell.
“Since Cardano hit $0.38 on January 21, approximately 31 addresses holding between 100,000 and 1,000,000 ADA have sold or redistributed their ADA coins,” he stated.
71% of ADA investors are now holding at a loss, while just 26% are “in the money,” according to statistics from crypto analytics company IntoTheBlock. 62% of Bitcoin investors are now in the red, while 35% are in the green. Nonetheless, according to the company, ADA’s low profitability figure “may imply that now is not a terrible time to establish fresh positions.” ADA was selling at $0.378 at press time, a decrease of nearly 5% over the previous 24 hours.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.