Analyst Says Cardano Entering Depression Stage, Recommends Accumulation

Popular crypto chartist Ali Martinez suggests that Cardano investors are currently in the depression phase of the market cycle but hints at a potential rally. 

Martinez made the assertion in a recent X post while analyzing Cardano’s price movement. The post features a chart showing the emotional phases of a market cycle, overlaid on another reflecting Cardano’s price actions and investors’ emotional response to these price movements. 

#Cardano investors seem deep in the depression phase of the market cycle—but that’s often where opportunities lie. Selling now might not be ideal; instead, accumulating $ADA during such pessimism could pay off.

Join me on this trade! Sign up here 👇https://t.co/73n8mW9Y5p! pic.twitter.com/hADWEuWs6L

— Ali (@ali_charts) October 7, 2024

Cardano’s Current Emotional Stage 

According to the chart, the emotional phases include euphoria, complacency, anxiety, denial, panic, anger, depression, and disbelief. Notably, Martinez confirmed that Cardano investors are in the depression phase of the market cycle. 

This stage is marked by extreme pessimism, with many investors giving up on the asset’s chances of recovery. At this stage, investors blame themselves for committing huge funds to Cardano, which has declined massively over the years. 

Despite this belief, Martinez noted that the depression stage often represents a buying opportunity. He advised against selling ADA at this point, suggesting investors should continue holding and accumulating the coin. 

According to the analyst, accumulating ADA during such pessimism could pay off when the market shifts to disbelief, marked by a “sucker’s rally.” 

Overall, Martinez is stating the importance of taking advantage of market downturns and accumulating ADA when other investors are scared of investing. He believes this decision might pay off when the market phase shifts to disbelief, leading to a significant rally. 

Cardano Investors Remain Confident Despite ADA Witnessing Significant Losses  

Cardano has experienced its fair share of the market’s unending downturns. The coin, which started the year in the top 10 ranking, is now out of this position. It is currently the 11th-biggest crypto, with a market cap of $12.09 billion. 

Data from CryptoRank shows that ADA’s price has plunged 41.9% since the beginning of this year and 41.1% in the past six months. ADA has lost about 11.3% of its value this month alone, as it currently trades at $0.3459 per token. Also, Cardano is down 88.82% from its all-time high (ATH) of $3.10, registered in September 2021. 

ADA’s massive price plunge over the years has left many investors in huge losses. According to IntoTheBlock’s In/Out of the Money metric, 75% of Cardano addresses are in losses at the current price. Conversely, 20% of Cardano investors are seeing profit, while the remaining 5% are at break even. 

Despite Martinez’s analysis, IntoTheBlock’s data suggests that most Cardano investors have shown long-term commitment. Notably, 72% of Cardano addresses have held the coin for over a year, while 25% have held onto their ADA between 1 and 12 months. The remaining 3% addresses have been holding the coin for less than a month.