[Cardano investors are in trouble as price approaches bear market lows]
At press time, ADA is priced at $0.30, a value it has not reached since November 2023. The sharp drop in ADA's value represents the most significant three-day sell-off since the 2022 bear market. While Cardano may be recovering, data from In/Out of Money Around Price (IOMAP) shows the outlook is unclear.
According to data from IntoTheBlock, the total number of addresses that purchased ADA and made a profit between $0.28 and $0.30 was outnumbered by the addresses that lost money at $0.31. Specifically, there were 106,850 addresses holding 572.21 million coins at $0.31, while only 35,460 addresses took profits between $0.28 and $0.30 and purchased 451.95 million coins. Considering the difference in the number of addresses, Cardano may lose support at $0.30 and could drop to $0.28 again.
In addition, the long-term and short-term difference between market value and realized value (MVRV) is -10.79%, showing that long-term holders are not realizing more profits, indicating that the cryptocurrency is approaching a bear market stage. Multiple sell signals have appeared on Cardano’s daily chart since August 2, which is one of the reasons why the token has experienced an accelerated pullback.
The Supertrend indicator showed a sell signal at ADA price of $0.42, indicating the price direction. The Parabolic Stop Reversal (SAR) indicator also shows a sell signal with the dotted line above the price. Additionally, ADA’s price is trading below the 23.6% Fibonacci retracement, showing that bears have complete control over the price action. If selling pressure increases, the cryptocurrency’s value could drop to $0.27.
