Cardano (ADA) Struggles to Regain Momentum as 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.

Cardano (ADA) has been facing selling pressure as the price continues to drop. According to IntoTheBlock data, the number of ADA daily active addresses in loss increased significantly over the past week.

This usually indicates panicking investors, which could lead to selling pressure as some investors try to offset their losses.

The market-wide uncertainty ahead of the U.S. presidential elections might also be contributing to Cardano’s bearish momentum.

Data from IntoTheBlock shows that only 17% of ADA holders are in profit at the current price point. Only 3.6% are close to their initial investments, while 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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