Long-Term Holders Underwater As Cardano Price Drops 10%, Will ADA Rebound or Extend Losses?

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Long-Term Holders Underwater As Cardano Price Drops 10%, Will ADA Rebound or Extend Losses?

Highlights

  • ADA holders face losses as MVRV ratio drops to negative.
  • Cardano price struggles below resistance as selling pressure intensifies.
  • ETF speculation adds uncertainty to ADA’s future price movement.

Long-term holders face losses as Cardano price crashes by 10% amid market crypto market sell-off. The market experiences sharp declines, triggering ADA’s downturn. Investors witness consolidation following bearish momentum. Cardano’s decline follows the broader trend, raising concerns about future movement. Experts assess whether ADA will stabilize or extend its losses amid ongoing volatility amid ADA ETF speculations. 

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Long-Term Holders Face Losses as Cardano Price Crashes 10%

The Cardano price is facing downward pressure as the Market Value to Realized Value (MVRV) ratio for 365 days drops to -4.71%. 

This metric, which measures the average profit or loss of ADA holders, has fallen into the negative zone, indicating that long-term holders are now at a loss. A negative MVRV values signal a potential accumulation zone, as investors may see an opportunity to enter at lower prices. However, if selling pressure continues, ADA could see further declines.

A declining MVRV suggests capitulation among holders who purchased ADA at higher prices. This aligns with the recent drop in ADA’s market price. The metric’s movement reflects broader market sentiment, with negative values often signaling a bottoming phase. 

Long-Term Holders Underwater As Cardano Price Drops 10%, Will ADA Rebound or Extend Losses?
Source: Santiment

If the trend reverses, ADA could stabilize as buying activity increases. However, if losses deepen, sellers may continue to drive prices lower in the short term.

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SEC Acknowledges Cardano (ADA) ETF Proposal

The crypto market faces widespread selling pressure today, which has caused Cardano to experience a sharp price dip. The US SEC approved NYSE Arca’s application to list Grayscale’s Cardano ETF, although this development failed to lift the Cardano price.

Cardano is among the top contenders for a crypto ETF in 2025, alongside Litecoin, XRP, and Solana. The US SEC recently acknowledged a proposal from NYSE Arca on behalf of Grayscale for a spot in Cardano ETF.

A decision on the approval or rejection of the ETF is expected in the coming months. The acknowledgment follows a surge in crypto ETF applications under the SEC’s new leadership. According to polymarket data, there is an estimation of a 68% chance of approval in 2025. Will This lead to a recovery for the ADA price?

Source: Polymarket
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Will ADA Price Rebound or Extend Losses?

The ADA price continues downward, trading at $0.6589, a 10% decline in the past 24 hours. The top altcoin struggles to hold above key support levels as selling pressure increases with also crypto market seeing a strong crash. The daily chart shows resistance at $0.8, while ADA nears crucial support between $0.60 and $0.5.  

Market data shows that the Relative Strength Index stands at 23 while in an oversold condition. The Moving Average Convergence Divergence indicator maintains a bearish position because its signal line interacts with the MACD line from below.

A break below $0.65 could lead to further losses toward $0.60 and $0.5.  However, If the Cardano price prediction bounces above $0.65, it may target $0.80 before testing the $1.00 critical resistance level if the ETF is approved.  

Long-Term Holders Underwater As Cardano Price Drops 10%, Will ADA Rebound or Extend Losses?
Source: TradingView

To sum up, the Cardano price remains under pressure as long-term holders face losses. If selling pressure eases, ADA could rebound. However, ongoing volatility may lead to further declines.

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Frequently Asked Questions (FAQs)

1. Why has the Cardano price dropped by 10%?

Cardano’s price decline is driven by a broader market sell-off and increased selling pressure from long-term holders.

2. Does a negative MVRV ratio suggest a buying opportunity?

Historically, a negative MVRV signals potential accumulation, but further declines are possible if selling pressure persists.

3. How does the Cardano ETF proposal impact ADA’s price?

The SEC’s acknowledgment of Grayscale’s Cardano ETF proposal has sparked speculation, but market volatility continues to drive uncertainty.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.