Cardano has been struggling since March as the price gets close to its one-year low. On-chain indicators show potential selling pressure.
Cardano (ADA) started its downward momentum after hitting a 34-month high of $0.807 on March 12. The asset recorded a 15% plunge over the past 30 days and is getting close to its one-year low of $0.29.
ADA is trading at $0.33 with a market cap of $11.8 billion. Its daily trading volume increased by 5% and is hovering at $185 million.
Investors offsetting losses
According to data provided by IntoTheBlock, the number of ADA daily active addresses in loss rose from 1,680 to 11,960 unique addresses over the past week. When DAA in loss increases, it usually indicates panicking investors.
This could, consequently, trigger a selling pressure as some investors would likely offset their losses.
The market-wide uncertainty ahead of the U.S. presidential elections could add to Cardano’s bearish momentum.
Data from ITB shows that only 17% of ADA holders are in profit at this price point. Only 3.6% are close to their initial investments and the remaining addresses are suffering losses.
Currently, Cardano is 89% down from its all-time high of $3.1 on Sept. 2, 2021.
The ADA token unlocks, while very small compared to its market cap, still add to the bearish sentiment around the asset. According to data from Tokenomist, 18.53 million ADA tokens, worth $6.15 million, entered its circulating supply on Oct. 27. The same amount is scheduled to be unlocked on Nov. 1
So far, 34.99 billion ADA tokens from its maximum supply of 45 billion ADA have entered circulation.
Last week, Cardano announced the integration of BitcoinOS’ Grail Bridge to utilize Bitcoin’s (BTC) $1.3 liquidity. This could allow Bitcoin holders to make transactions to other networks using the zero-knowledge mechanism without any intermediaries.
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