More Cardano (ADA) addresses are currently witnessing profits on their investments despite the ongoing price consolidation.
For context, ADA is one of the biggest victims of the current market turbulence. After recovering above $1 to claim $1.18 on Dec. 12, Cardano faced another phase of intense selling pressure, dropping to a one-month floor of $0.7618 on Dec. 20 before rebounding slightly.
Cardano Addresses in Profit Amid Price Drop
Despite the mild rebound, Cardano remains below the $1 psychologically relevant threshold at press time, down 15.39% in December. However, this turbulent phase has not impacted investor profitability as many would expect.
Notably, data from blockchain analytics resource IntoTheBlock confirms that up to 2.71 million Cardano addresses are still witnessing profits on their ADA holdings. This figure represents an impressive 61.63% of the total wallets holding Cardano.
In contrast, about 1.51 million addresses, marking 34.28% of total wallets, bought Cardano above the current price, and are seeing losses as a result of the price collapse. Meanwhile, wallets at a breakeven currently amount to 179,970.
Interestingly, Cardano address profitability was at a much better position earlier this month, in the heat of the latest market uptrend. With ADA climbing to a three-year peak of $1.23 on Dec. 3, addresses in the money rose to a whopping 3.27 million, representing 74.35% of the total.
With Cardano now 26% down from the recent peak, profitability ratio has dropped below the 70% mark. This metric could improve significantly once the current consolidation phase passes, as ADA looks to break back above the $1 price region.
Cardano Eyes Break Above $1
The path to this recovery would involve a breach of the Dec. 21 resistance at $0.9972. Once the bulls break above this level, Cardano could face another roadblock at the dynamic 20-day moving average (MA) ceiling currently at $1.0321. Conquering this area would allow ADA cement its position above $1 and flip it back to support.
IntoTheBlock identifies a robust supply wall between $0.9696 and $1.09. Within this price range, over 243,900 addresses purchased 3.77 billion ADA tokens. This sell wall could bolster the resistance for Cardano when prices reach this range.
Analysts such as Javon Marks believe in ADA’s potential to breach these resistance levels. In an analysis this morning, Marks suggested that Cardano’s next direction could be bullish, evident from its recent breakout. The market watcher expects another 180% surge, which could take prices to $2.77.
$ADA (Cardano) looks to have chosen its direction and it is looking fairly evident, by its past breakout performance, of what’s coming next which can be another >180% climb from here to $2.7709, at potentially the least!
History also suggests the breaking of 3 targets, which can… https://t.co/c6Q6SXgU0Q pic.twitter.com/AheIoOXVYL
— JAVON⚡️MARKS (@JavonTM1) December 24, 2024
At press time, Cardano changes hands for $0.9135, down 2.26% today after two days of bullish performance. If the pullback persists, the bulls need to defend the lower Bollinger Band at $0.8164 to avoid steeper declines. Meanwhile, whales have continued to buy the dip.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
