50% of Cardano, 28% of $SHIB holders at a loss: Time to hold or fold?

Cardano [ADA] and Shiba Inu $SHIB  saw muted price action in recent weeks and short-term bearish pressure. ADA was hanging on to the $0.568 support but its position looked precarious. Shiba Inu also appeared set on a course toward a demand zone 13% south.

A post on X from a crypto analyst noted that Cardano and Shiba Inu, among other altcoins, had a large percentage of holders out-of-the-money. What are the implications of this news?

Cardano and Shiba Inu bulls have an uphill battle ahead

Out-of-the-money has a different meaning in the options market. When referring to crypto holders, it simply means that they are at a loss. At current market prices, 50% of ADA holders were at a loss, and 28% of Shiba Inu holders were in the red, according to IntoTheBlock data.

Shiba Inu also showed similar signs of consolidation as Cardano. The trading volume has reduced dramatically and the bulls were unable to push above the $0.000032 level, which had acted as support during the first half of March.

The 1-week timeframe chart showed that the $0.000031-$0.000032 area, as well as the $0.000039-$0.00004 area were the two bearish zones to watch out for.

The selling pressure could get even more intense if underwater holders seek to get out at break-even or a minor profit

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