Cardano: How even a +30% hike could not save most ADA holders

• ADA’s price has risen by double digits in the last month.
• However, 65% of its holders remain underwater.

Despite a recent surge in Cardano’s [ADA] price, only 35% of its holders are currently in profit, according to data from IntoTheBlock.

This is significantly lower than other leading Layer 1 (L1) networks, such as Bitcoin [BTC] and Ethereum [ETH], where over 60% of holders are in profit.

Source: IntoTheBlock

During October’s general market rally, ADA’s value rose by 16% to close the month at a price level last observed in August. 

Although the market has witnessed a surge in profit-taking activity in the last month, ADA has managed to log a 33% price hike. Data from CoinMarketCap showed that the altcoin’s price has surged by over 30% in the last 30 days.

However, the recent rally was not enough to offset the losses incurred by holders who bought the token at higher prices. 

Data from IntoTheBlock showed that a significant amount of ADA coins, amounting to 7.19 billion, were acquired at the $0.38 price point.

The altcoin has continued to face resistance at this price mark. At its current price of $0.37, traders who bought at that high price mark and above remain underwater. 

Check on ADA holders

ADA’s Market Value to Realized Value (MVRV) ratio assessed on a 30-day moving average confirmed IntoTheBlock’s data.

The MVRV ratio tracks the ratio between an asset’s current market price and the average price of every coin or token of that asset acquired. A positive MVRV ratio above one signals that an asset is overvalued. 

Conversely, a negative MVRV value shows that the asset in question is undervalued. So, if holders sold at the asset’s current price, they would realize losses. 

AMBCrypto found that ADA’s MVRV slipped into negative territory in December 2021 and has since remained below zero.

During the entirety of the 2022 trading year, ADA’s MVRV has returned only negative values. This has also been the case since the beginning of this year.  This meant that every investor that has sold since then has realized some degree of losses. 

Read Cardano’s [ADA] Price Prediction 2024-2025

While the recent price hike caused this indicator to initiate an uptrend, it still remains trapped within the negative territory.

At press time, ADA’s MVRV was -48.62%. This suggested that anyone who sells at the current price of $0.37 would incur an average loss of 48% on their investment. 

Source: Santiment