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

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. 

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. 

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.

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?

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.  

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.