- Santiment data reveals a decline in the number of addresses holding Cardano (ADA) over the past three days, signaling a potential shift in ownership dynamics.
- Despite ADA’s recent price surge, its MVRV ratio remains below one, indicating that, on average, investors who bought ADA in the past are holding the coin at a 17.41% loss.
Cardano’s native cryptocurrency ADA is witnessing a strong bullish surge. As of press time, Cardano (ADA) is trading 12.41% up at $0.49 with a market cap of $17.4 billion. With this, Cardano (ADA) has extended its weekly gains to a staggering 30%.
Cardano (ADA) has witnessed a decline in the number of addresses holding the coin over the last three days, as highlighted by data analysis firm Santiment on the social media platform X.
This reduction in addresses indicates a decrease in coin ownership by small investors, signaling a shift in ADA ownership dynamics. According to Santiment, the decline in wallets is often associated with small holders capitulating and selling to larger holders at a loss.
Despite ADA’s recent double-digit value increase over the past month, a significant portion of its holders still find themselves in a loss position. An analysis of the altcoin’s Market Value to Realized Value (MVRV) ratio reveals that this metric has been below one since March 2022.
📈 #Cardano‘s market value is +7% today, despite the majority of #crypto dropping Wednesday. Total $ADA addresses have been shrinking, which is a good sign. Typically, declining wallets is a sign of small holders capitulating & selling to whales at a loss. https://t.co/7NeeZ6pRph pic.twitter.com/FAsL2AEj9N
— Santiment (@santimentfeed) December 6, 2023
The MVRV ratio gauges an asset’s current market price relative to the average acquisition price of all its coins or tokens. A MVRV ratio above one suggests overvaluation, potentially yielding profits upon selling. Conversely, a negative MVRV indicates undervaluation, implying potential losses for current holders upon selling. Despite a recent uptrend in ADA’s MVRV ratio, it remains below one and consistently posts negative values.
As of the latest data, ADA’s MVRV ratio stands at -17.41%. This implies that, on average, investors who bought the asset in the past are currently holding the coin at a 17.41% loss.
Cardano (ADA) Bullish Sentiment
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