For several months, the crypto Cardano (ADA) has been facing marked price drops. It even almost reached its lowest level in a year. Even worse! Selling pressure is increasing, fueling fears of a massive sell-off from crypto investors.
Crypto Cardano under pressure: Price drop and potential sales
Cardano suffered a loss of 15% over the last 30 days, causing the ADA price to plunge to $0.33. With a current market capitalization of $11.8 billion, the ADA crypto is in fact down 89% from its all-time high of $3.1.
Many Cardano holders are also feeling the effects of this decline. Some considering selling to make up for their losses. The number of active addresses illustrates the state of panic among crypto investors. This records a loss last weekgoing from 1,680 to 11,960.
As shown in the data from IntoTheBlockonly 17% of current holders of the ADA crypto-asset record a profit. The majority suffer losses.
An increasing supply in circulation, reinforcing selling pressure
As the number of ADA crypto tokens in circulation continues to increase, bearish outlook seem to be increasing. Nearly 18.53 million additional crypto tokens, worth $6.15 million, joined the market on October 27. Enough to fuel fears of an imminent massive sale!
This phenomenon could recur with a similar unblocking planned for November 1, thus contributing to the ADA crypto price drop. Currently, 34.99 billion tokens are in circulation, out of a total supply of 45 billion. This situation makes the crypto market vulnerable, increasing the risk of even greater fluctuations.
As Cardano continues to face uncertainties (especially with the US elections approaching), the bearish momentum could continue. The situation could offer opportunities, but also risks for ADA crypto holders considering their next strategy.
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