A closely followed crypto strategist is issuing a warning to Cardano (ADA) traders and investors alike, saying the sixth-largest cryptocurrency is flashing signs of fundamental weakness.
In a new video, the crypto analyst and host of InvestAnswers tells his 382,000 YouTube subscribers that he’s looking at the holders versus speculators chart of Cardano, and the data does not look promising for the smart contract platform.
“When you a look at Cardano holders versus speculators, and this is blockchain data, and I assume it is completely correct, but I was stunned by how low a percentage the long-term holders of Cardano were, very, very strange. Only 6.95% of Cardano holders hold Cardano [for] more than one year. Think about that. 70% are cruisers. That means they’ve had it for 12 months or less and 25% [are] active traders.
So let’s maybe put this in comparison to Ethereum… Ethereum is 60% long-term holders.”
Next up is Cardano’s number of active addresses, which according to the InvestAnswers host is another red flag for the cryptocurrency.
“Now let’s look at active addresses. Another interesting statistic you need to dig into. It’s not only the number of addresses, the chain has three million addresses, but those that are active is only 4%. And remember when you put things in perspective again to Ethereum, they have 66 million addresses. And despite a huge amount of long-term holders, they have good levels of activities as well.”
Looking at Google trends, the crypto strategist highlights that retail investors are currently showing very little interest in the sixth-largest coin.
“So let’s look at Google trends. Do people care about Cardano? Google trends, globally, over the last 12 months, we are back to one-year lows. And that means nobody seems to be interested in Cardano.”
Although the crypto analyst is bearish on the prospects of Cardano, fellow crypto strategist Capo believes that ADA is showing signs of strength after successfully retesting the $1.20 area as support.
According to Capo, Cardano is likely targeting a 580% rally.
“Second retest of the previous ATH (all-time high).
As long as it stays above this level, $3-4 should be next (last ATH), and if it consolidates above it, we will probably see $10.”
I
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Check Latest News Headlines
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/breakermaximus/Foryoui3
