A closely followed crypto strategist says the sixth-largest cryptocurrency is showing signs of fundamental weakness. Cardano (ADA) warns its traders and investors.
In a new video, crypto analyst and host of InvestAnswers tells 382,000 YouTube subscribers that he’s looking at Cardano’s owners vs speculators chart, and the chart’s data doesn’t bode well for the smart contract platform.
“When you look at the Cardano holders (owners) vs. speculators chart; this is blockchain data and i assume this is totally correct, i was stunned by how low the percentage of long term Cardano holders was which was very, very strange. Only 6.95 percent of Cardano owners have owned Cardano for more than a year. Think about it. 70 percent cruiser. This means they have been in possession for 12 months or less, and 25 percent of them are active traders.
Now let’s compare it to Ethereum… Ethereum has 60 percent long-term investors.”
Next is Cardano’s number of active addresses, which is another red flag for the cryptocurrency, according to the InvestAnswers server.
“Now let’s take a look at the active addresses. Another interesting statistic to look into. It’s not just the number of addresses, there are three million addresses on the chain; but only 4 percent of them are active. And again, putting things into perspective, it’s important to remember that Ethereum has 66 million addresses. Ethereum has a lot of long-term investors, as well as a high level of activity.”
Looking at Google trends, the crypto strategist also highlights that retail investors are currently showing little interest in the sixth-largest cryptocurrency.
“So let’s take a look at Google trends. Are people interested in Cardano? Google trends, globally in the last 12 months – we’re back to one-year lows. That means no one is interested in Cardano.”
While the crypto analyst is rather pessimistic about Cardano’s prospects, a few other crypto analysts believe it’s time for Cardano to rise from the ashes. One of them, crypto strategist Capo, believes ADA is showing signs of strength after successfully retesting the $1.20 area as support.
According to Capo, he’s probably aiming for a stunning 580 percent rally for Cardano.
“Previous ATH (all-time high) retested for the second time
As long as it stays above this level, the next level should be the $3-4 level (the last ATH level). If it consolidates above that, we will probably see the $10 level.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.