Cardano Faces Tug-of-War Between Profit and Loss: What’s Next For ADA?

• Cardano is seeing a tug-of-war between holders profiting and those facing losses, possibly causing price stagnation.
• High-value transactions ($100k+) in ADA have slowed down since March.
• Despite fluctuations, ADA’s support levels at $0.72 and $0.70 could prevent a significant drop.

The Cardano (ADA) market is currently seeing a balance between holders who have made gains and those who have incurred losses. This situation may lead to a phase of price stability for the cryptocurrency in the near term.

Since the beginning of March, there has been a notable decrease in the number of transactions exceeding $100,000, signaling a slowdown in high-value activity within the ADA ecosystem.

Despite this slowdown, the presence of strong support levels could act as a safety net for ADA’s valuation, potentially setting the stage for the cryptocurrency to begin a new phase of upward momentum.

Whale Transactions Detach from Cardano Price

Over the past three months, a clear correlation has been observed between ADA’s high-value transactions, specifically those exceeding $100k, and its market price. However, this pattern has recently taken an unexpected turn. From March 6 to March 14, the volume of whale transactions dropped by a significant 20%, from 1,192 to 953, while the ADA price experienced an uptick.

Analyzing high-value transactions offers useful information about investor sentiment toward ADA. In the previous quarter, a correlation was observed between the rise in transactions exceeding $100,000 and the price appreciation of ADA, indicating that investor confidence may be tied to the volume of these substantial transactions.

Intriguingly, a similar deviation happened in November 2023, when ADA prices entered a 15-day stagnant phase before experiencing a remarkable 41% surge in just five days.

Examining the current state of ADA through the lens of address profitability reveals an intriguing snapshot. Currently, 54.85% of ADA holders are in the green, enjoying profitability, while 43.21% are navigating through losses, with a slim 1.94% margin teetering on the break-even edge.

However, an alternative scenario could unfold, where both winners and losers choose to hold steadfast, betting on ADA’s future appreciation. Should this collective resolve hold, it could lead to a resurgence in ADA price, showcasing the complex interplay of decisions within the cryptocurrency ecosystem.

Analyzing the ADA In/Out of the Money Around Price (IOMAP) chart reveals strong support levels around $0.72 and $0.70. If ADA fails to hold these support zones, it could potentially drop as low as $0.63.