PEPE’s re-flip – Everything that helped the memecoin in May
- ADA’s price looked ready to hit $0.50, if achieved, the ratio of holders in loss will reduce below 55%.
- Whale concentration passed 2021 levels, suggesting that the price might get close to $3 later on.
In a surprising move, Cardano [ADA] became the best-performing asset out of the cryptocurrencies in the top 10. At press time, ADA changed hands at $0.48, representing a 7.28% increase in the last 24 hours.
Previously, AMBCrypto had reported how Cardano could soon leave the top 10 in terms of market cap. But it seemed the token had other plans, as the price helped solidify its place on the standings.
However, there was one thing that could change— And that is the percentage of holders in the money. At press time, data from IntoTheBlock showed that only 40% of ADA holders were in profit.
Whereas, 55% of those holding the token were “out of the money.”
Source: IntoTheBlock
Many addresses are ready to provide support
But this ratio might change if Cardano’s price continues to increase. For that to happen, the price of the token has to hit an average price of $0.49.
At this point, 65,590 addresses scooped 792.58 million tokens when the price was between $0.48 and $0.50.
Going by the current market sentiment, this large cluster of addresses might provide support for the token. However, traders might need to watch out.
This is because the large concentration of accumulation might cause selling pressure if the token hits the average cost basis. If this is the case, ADA’s price could face rejection at $0.50.
By the look of things on-chain, ADA might overcome the potential resistance at $0.50. One of the grounds for this was Cardano’s volume.
According to AMBCrypto’s analysis using Santiment, Cardano’s volume spiked to a weekly high of $460.77 million. The increase in volume indicates rising interest in ADA.
Furthermore, if the volume continues to increase alongside the price, the predicted move to $0.50 might come to pass within a short period.
Source: Santiment
Should this be the case, belief in the potential of the token might rise. As such, $0.50 could be a new support for ADA while the token aims for a higher value.
Can ADA reach $3 again?
Furthermore, the long-term potential of the token looks promising. But that would only be the case as long as the current market cycle does not hit the top as mentioned in some corners.
AMBCrypto was also able to back this up by looking at this historical concentration. At press time, retail held 71.91% of the total ADA supply.
Investors, who have a reasonably average position in the crypto, held 19.47% of the supply. Lastly, ADA whales owned 6.82%.
Read Cardano’s [ADA] Price Prediction 2024-2025
The last time whales held anything close to 8% of the total Cardano circulation was in 2021.
Source: IntoTheBlock
It was also around this time that ADA’s price hit $3.09. By 2022, the bear market forced most of these whales to cash in on the asset. But with increasing large accumulation, ADA might attempt revisiting the peak.
