Analyzing ADA’s profitability: 61% of Cardano addresses remain in the green

• In the last seven days, ADA has declined by almost 10%.
• More holders remain profitable despite this drop.

Cardano (ADA) has emerged as one of the major losers among the top ten assets in the last seven days, but more than half of its holders are in profit. On-chain data shows that over 61% of ADA addresses are profitable, even as the asset consolidates following its recent rally.

The price is hovering around $0.9256, indicating a slight pullback. 

Cardano consolidates after a stellar rally

Cardano’s price action reveals a consolidation phase following its sharp rally earlier in December. The current price of $0.9256 marks a 1.03% decline in the latest session, reflecting cautious market sentiment.

Despite the pullback, ADA remains above critical support levels, maintaining its bullish structure.

Source: TradingView

Technical indicators highlight key trends in ADA’s price movement. The 50-day moving average ($0.9131) crossed above the 200-day moving average ($0.5053) back in November, forming a “golden cross”.

This has remained so since then despite the declines ADA has witnessed. This bullish crossover aligns with ADA’s price recovery over the past months.

The MACD (Moving Average Convergence Divergence) indicator shows a slight bearish divergence. The MACD line has crossed below the signal line, suggesting a slowdown in bullish momentum.

However, the histogram’s narrowing negative bars indicate that selling pressure may be easing, leaving room for potential upward movement.

61.63% of Cardano addresses now in profit

Cardano’s on-chain data further strengthens its bullish narrative. According to a recent analysis, 61.3% of ADA addresses are currently profitable.

According to data from IntoTheBlock, 2.71 million addresses are currently in profit around the current price.

The profitability metric underscores the network’s growth and increasing investor confidence.

The fact that most holders are in profit even during consolidation suggests that Cardano has established a strong base of long-term investors who are less likely to exit the market during minor corrections.

Cardano’s overbought conditions eased

Cardano’s 30-day Market Value to Realized Value (MVRV) ratio provides further context. The chart shows that ADA recently transitioned from overbought territory to more neutral levels, with the MVRV ratio now at -12.44%.

This shift indicates that most short-term traders have taken profits, allowing for healthier consolidation and reducing the risk of sharp corrections.

Source: Santiment

Historically, negative MVRV ratios have signaled buying opportunities, reflecting undervaluation relative to recent price trends. As ADA consolidates, this metric suggests the potential for renewed accumulation by investors seeking long-term growth.

Is your portfolio green? Check out the Cardano Profit Calculator

While short-term indicators suggest a cautious approach, ADA’s long-term outlook remains bullish, driven by robust on-chain activity and strong investor confidence.

As the asset approaches 2025, all eyes will be on whether ADA can break past resistance and sustain its momentum.