Cardano has been experiencing challenges since March, with its price nearing a one-year low. On-chain indicators suggest potential selling pressure.

Cardano Price Movement

Cardano began its downward trend after reaching a 34-month high of $0.807 on March 12. Over the past 30 days, the asset has seen a 15% decline, approaching its one-year low of $0.29.

Currently, ADA is trading at $0.33 with a market cap of $11.8 billion. Its daily trading volume has increased by 5%, now standing at approximately $185 million.

Investor Behavior and Market Sentiment

Data from IntoTheBlock indicates a significant rise in the number of ADA daily active addresses (DAA) in loss, increasing from 1,680 to 11,960 unique addresses within the past week. This rise in DAA in loss often signals panicking investors.

This could potentially lead to selling pressure as some investors may look to offset their losses.

Additionally, market-wide uncertainty, particularly ahead of the U.S. presidential elections, could further contribute to Cardano’s bearish trend.

Profitability and Loss Statistics

According to ITB data, only 17% of ADA holders are currently in profit. Approximately 3.6% are near their initial investments, while the remaining addresses are experiencing losses.

Cardano is now 89% down from its all-time high of $3.1, recorded on September 2, 2021.

Token Unlocks and Market Impact

Despite the token unlocks being relatively small compared to Cardano’s market cap, they contribute to the bearish sentiment surrounding the asset. Data from Tokenomist shows that 18.53 million ADA tokens, worth $6.15 million, were added to the circulating supply on October 27, with the same amount scheduled for release on November 1.

So far, 34.99 billion ADA tokens out of the maximum supply of 45 billion have entered circulation.

Recent Developments

Last week, Cardano announced the integration of BitcoinOS’ Grail Bridge to leverage Bitcoin’s $1.3 trillion liquidity. This integration could enable Bitcoin holders to conduct transactions across other networks using a zero-knowledge mechanism, eliminating the need for intermediaries.

Stay updated with more cryptocurrency news and insights to navigate the evolving market landscape effectively.

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