Cardano holders are panicking, selling pressure could be triggered

Cardano has been struggling since March, with the price approaching a one-year low. On-chain indicators show potential selling pressure.

Cardano (ADA) began its downward momentum after reaching a 34-month high of $0.807 on March 12. The asset is down 15% in the last 30 days and is approaching a one-year low of $0.29.

ADA is trading at $0.33 with a market cap of $11.8 billion. Daily trading volume increased by 5% to $185 million.

Investors recoup their losses

According to data provided by IntoTheBlock, the number of missing ADA daily active addresses increased from 1,680 to 11,960 unique addresses last week. When DAA’s loss increases, this usually indicates that investors are panicking.

ADA DAA is in loss | Source: IntoTheBlock

As a result, this could trigger a selling pressure in which some investors will likely recoup their losses.

Market-wide uncertainty ahead of the US presidential election could increase Cardano’s bearish momentum.

Data from ITB shows that only 17% of ADA holders make a profit at this price point. Only 3.6% are close to their initial investment and the remaining addresses are losing money.

Currently, Cardano is 89% down from its all-time high of $3.1 on September 2, 2021.

The ADA token has been unlocked, although it is very small compared to the market cap, adding to the bearish sentiment around the asset. According to data from Tokenomist, 18.53 million ADA tokens worth $6.15 million were put into circulation on October 27. The same amount is planned to be opened on November 1.

So far, 34.99 billion ADA tokens have entered circulation out of a maximum supply of 45 billion ADA.

Last week, Cardano announced the integration of BitcoinOS Grail Bridge to leverage Bitcoin (BTC)’s $1.3 liquidity. This could allow Bitcoin holders to make transactions on other networks using the zero-knowledge mechanism without any intermediaries.