Cardano's (ADA) price recently experienced a significant drop, failing for the second time in a month to close above the $0.40 level. The altcoin’s price fell by 11% within 48 hours, bringing it down to around $0.35.
Despite this sharp decline, ADA still has a chance to recover. The possibility of the cryptocurrency regaining lost ground presents an opportunity for traders and long-term investors alike.
The recent downturn has led to a loss in profitability for approximately 3.31 billion ADA tokens. According to the Global In/Out of the Money (GIOM) metric, this supply, worth over $1.1 billion, was acquired when Cardano was trading between $0.35 and $0.37. If ADA manages to recover above the $0.37 mark, it could return to profitability.
As Cardano approaches this crucial price level, investor sentiment will be key in determining whether the cryptocurrency can bounce back. A recovery above $0.37 would improve profitability for those holding ADA and reinforce confidence among investors, potentially leading to further price gains.
Despite the recent 11% decline, Cardano's realized profit/loss indicator suggests that investors remain composed. The lack of significant spikes in the indicator signals a low level of panic selling.
This stability is crucial, as it indicates that ADA holders are opting to hold their positions rather than sell in a panic.
