On-chain analytics firm IntoTheBlock has reported that, despite the recent market rally, a substantial 65% of ADA holders find themselves in a loss, a figure notably lower than other major protocols.
Breaking down this statistic further, IntoTheBlock’s Global In/Out of the Money metric categorizes addresses based on whether they are profiting (in the money), breaking even (at the money), or experiencing losses (out of the money) at the current price. According to this classification, 35.71% of ADA holders, or 1.59 million addresses, are currently in profit. In contrast, 57.10%, equivalent to 2.54 million addresses, are experiencing losses. Additionally, 7.19% of holders, approximately 319,430 addresses, fall into the at-the-money category. This analysis is based on ADA’s current price of $0.376.
Understanding the proportion of addresses facing losses on their positions provides insight into potential selling pressure at specific price ranges. Notably, a price range where a majority of users are incurring losses can create significant selling pressure, acting as a barrier to further price increases.
IntoTheBlock’s on-chain data highlights a key resistance level at $0.38, with 7.19 billion ADA acquired at this point. Clearing this level could potentially alleviate the situation for approximately 65% of Cardano holders currently facing losses or trading near their break-even points. Breaching this resistance might reduce selling pressure, potentially leading to improved profitability for holders.
If ADA successfully surpasses the $0.38 barrier, the next target could be the $0.41 level. As of the time of writing, ADA was down 2.05% in the last 24 hours, trading at $0.376 and reflecting the broader market declines.
