Cardano price ranges below $0.63, ADA on-chain metrics show signs of sell-off

Source Fxstreet
  • Cardano is seeing more loss transactions than profitable ones this week, compared to the Ethereum and Bitcoin network.
  • Cardano holders realized 102.38 million in losses in the past week, a likely sign of capitulation.
  • At the same time nearly 78% of Cardano wallets are currently sitting on unrealized gains.

Cardano holders who have closed trades this week have realized more losses than profits when compared to the Ethereum and Bitcoin networks, according to on-chain data from Santiment. That ADA holders are shedding their holdings at a loss, could be a sign the altcoin is selling off. The fact it is coinciding with large wallet holders accumulating, however, could be a sign of hope for bulls, that traders are “buying the dip."

At the current price of $0.618, nearly 78% of ADA holders are still profitable, suggesting the capitulation phase may be close to ending and that there is hidden strength for the altcoin. If ADA price rallies past the $0.63 level, there is no significant resistance on Cardano’s path to $0.75.

Also read: Cardano price notes further decline, report reveals 74% of ADA ecosystem coins are dead

Cardano on-chain metrics show holders are realizing losses

Cardano whale transactions show spikes that coincide with realized losses in the Network Realized Profit/ Loss metric. At the same time as some holders are cutting their losses, whale transactions valued at $100,000 and higher have surged. Historically, this has happened on two previous occasions in the past six months: 

  • Immediately after a Cardano price drop. 
  • Coinciding with negative spikes (losses) in Network Realized Profits/ Loss metric.

This shows that whales are likely accumulating ADA during a dip phase, with the possibility of a price renaissance afterwards. 

Cardano

Cardano Network Realized Profit/Loss and Whale Transactions Valued at $100,000. Source: Santiment 

The capitulation phase typically comes to an end when large wallet investors have no more assets to sell, and is followed by an increase in buying pressure from traders buying the pull back in the asset’s price. 

It is likely that Cardano is currently in the capitulation phase, following this, sidelined buyers will have an opportunity to step in and buy ADA price at a discount. 

Analysts at on-chain intelligence tracker Santiment identified that this week, Cardano is seeing more holders realize losses than profits, when compared to the ratio of profitable on-chain transfers on the Ethereum network and Bitcoin. 

Cardano

Cardano transfers happening at a loss. Source: Santiment 

This metric supports the thesis that Cardano price is likely to see a recovery following the ongoing correction and capitulation. 

At the current price level, 77.84% of wallets holding Cardano are sitting on unrealized profits. A mere 15% addresses are sitting on unrealized losses. Interestingly, IntoTheBlock data shows that the only significant resistance in Cardano’s path to $0.75 is the $0.63 level. 

Cardano

Global In/Out of the Money. Source: IntoTheBlock 

Cardano price could rally towards $0.75 target

Cardano price is currently in an uptrend. The altcoin is likely to rally towards the $0.7520 target where 536.39 million ADA tokens were accumulated by 51,270 wallet addresses. The $0.6359 level is likely to act as resistance in Cardano’s price rally to its target.

The Moving Average Convergence Divergence (MACD) indicator and the Awesome Oscillator (AO) support Cardano’s uptrend and show there is positive momentum in ADA. 

Cardano

ADA/USDT 1-day chart

A daily candlestick close below the 23.6% Fibonacci retracement level of the climb to Cardano’s 2024 peak, at $0.5957, could invalidate the bullish thesis and Cardano price could sweep the 50% Fibonacci retracement level at $0.5446 before attempting a recovery in its price. 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
【Daily Brief】10-year Treasury yield briefly tops 5%, S&P 500 slips to 7,602 and the dollar firms at 99.3 as the Fed's decision eve beginsThe 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
Author  Irene Q.
Sep 15, Tue
The 10-year Treasury yield touched 5.014% on Monday — its first print above 5% since October 2023 — while the S&P 500 closed 0.48% lower at 7,619.98 and the dollar index firmed to 99.3. Here is the full market wrap ahead of Wednesday's FOMC decision, the dot plot and the August retail sales report, plus today's CLARITY Act Senate vote.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
Sep 28, Mon
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth tradingNvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
Author  Irene Q.
20 hours ago
Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.
placeholder
The 30-year Treasury just hit a 22-year high — and the bond market is not pricing the Fed, it is pricing the deficitThe 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
Author  Irene Q.
19 hours ago
The 30-year Treasury yield closed at 5.56% on 28 September, the highest since June 2004, while the 10-year reached 5.24% and the 20-year 5.60%. The curve has steepened roughly 30bp in eight sessions even as October hike odds sit at 70.3%. That gap is the story: the long end is repricing fiscal and inflation risk, not policy. With PCE on Wednesday and payrolls on Friday, here is what the long end is really saying.
Related Instrument
goTop
quote