60% Cardano [ADA], 83% ARB holders lose money – Breaking down why

ADA’s price may breach support and chase new lows.
ARB may witness further decline as the demand for the altcoin continues to drop.

As a seasoned crypto investor with a keen eye for market trends and on-chain data, I’ve closely monitored the performance of Cardano (ADA) and Arbitrum (ARB). Based on recent developments and technical analysis, my assessment is that both assets are currently in a bearish phase.

According to a recent analysis by IntoTheBlock, Cardano [ADA] and Arbitrum [ARB] are the two major Layer 1 (first layer) and Layer 2 (second layer) assets with the largest number of holders experiencing losses.

Based on the information from the on-chain data provider, approximately 60% of ADA investors are currently experiencing a loss, while over 83% of ARB investors find themselves in similar unfavorable positions.

In the past month, the prices of ADA and ARB have experienced substantial decreases. Based on CoinMarketCap’s information, ADA’s price has dropped by approximately 30%, whereas ARB has lost around 35% of its worth over this time frame.

More downsides in the interim for ADA

Based on a three-day analysis, it appears that ADA‘s price may continue to drop.

At the start of April, according to the data from the graph, the coin’s value dipped below both its 20-day and 50-day moving averages.

When the price of an asset drops beneath its moving averages, it’s typically a sign that the bullish trend has given way to a bearish one.

As a researcher studying market trends, I can share that when the demand for an asset is relatively low while it’s still declining in value, this serves as a strong indication of an ongoing downtrend. The price could potentially drop even further.

Examining ADA‘s RSI and MFI charts provided evidence of decreased demand for ADA among market players.

As of this writing, ADA’s RSI was 35.60, while its MFI was 32.13.

As a researcher analyzing the trading data for ADA, I observed that selling transactions marginally surpassed the number of new coins being acquired in the market.

As a researcher examining the cryptocurrency market, I’ve noticed that the value of ADA has experienced a significant decline over the past month, dropping by more than ten percent. Consequently, its current trading price hovers around the crucial support level of $0.44 at present.

Despite the formation of a descending triangle and the common expectation of bullish breakouts, there’s a strong possibility that bears will drive the price down to $0.26 instead.

As a crypto investor, if the bullish forces manage to bounce back, there’s a good chance that the coin could surge in an uptrend and reach a price of around $0.88.

ARB has little to offer

As of the current market update, I observe ARB trading at a price of $1.03. The daily chart reveals a notable downturn in its demand. Additionally, both its Relative Strength Index (RSI) and Money Flow Index (MFI) indicate bearish signals, as they are positioned below their respective midpoints at this moment.

Read Cardano’s [ADA] Price Prediction 2024-25

As a crypto investor, I’ve noticed a shift in market sentiment as I closely monitored the Elder-Ray Index of the altcoin market. This crucial indicator, which measures the balance between buying and selling pressure, signaled bearish conditions by returning a negative value.

When this indicator is negative, bear power is dominant in the market.  

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2024-05-01 19:04