ADA needs to hold above this level to recover from its current lows

The price of ADA, the third largest cryptocurrency by market, has fallen 4% in the past 24 hours. In fact, ADA’s price movement follows that of ETH. What does this mean for investors? Will the loss level continue or will it recover soon?

ADA follows ETH?

ADA is constantly decreasing over the same 7-day period as ETH, by 15% at the time of going to press. The situation, currently hovering at $ 2.14, doesn’t look good for ADA holders.

ADA down 15.08% | Source: TradingView

Those who bought at around $ 2.41 are now debating whether to reduce their losses if the price drops to $ 2.14. They currently represent 67% of all ADA investors.

On the other hand, profitable addresses are not much affected, but break-even addresses are. These people suffered losses and the total number of addresses lost increased by 4%.

4% of ADA addresses are at a loss | Source: Intotheblock

Those losses further caused the owner’s average credit per address to drop from $ 40,000 to $ 37,000.

Average balance of ADA addresses decreases | Source: Intotheblock

Is There Hope for Recovery?

Hopes of a price recovery remain, but whatever happens, ADA must maintain its strength. Its correlation with Bitcoin has dropped to 0.71.

Correlation with Bitcoin | Source: Intotheblock

But that hasn’t stopped optimistic investors from making as much profit as possible. The market’s order books show more purchase demand than ADA 16 million worth $ 34.2 million, even in such a market.

ADA will continue to be bought | Source: Intotheblock

Currently, $ 2 is an important and immediate level of support. To minimize losses, ADA needs to stay above it, as one decline could lead to the next crash.

ADA sparked the biggest boom in crypto innovations since Ethereum was launched

The Coin Bureau host says Cardano could spark a huge wave of crypto innovations that could rival the launch of Ethereum.

Anonymous Analyst Guy called With many decentralized applications (DApps) that are to be started on the mainnet, Cardano offers a great opportunity.

“We’re about to see another explosion in crypto-innovation unlike anything seen since Ethereum launched in 2015, and early adopters will see the biggest gains.”

Guy says one reason users and developers are drawn to Cardano is because of the unique staking system that makes it one of the most decentralized cryptocurrencies out there.

“The staking rewards will decrease if there is too much ADA in a single pool. That promotes decentralization …

ADA’s staking reward is currently around 4.5% per year, and the fact that there is no staking lock or unlock time makes it incredibly attractive. As a result, almost 70% of the supply is currently being staked out by ADA. This makes Cardano the most valuable blockchain after active use. “

Guy cautioned, however, that Cardano’s third largest user base for developers could be a double-edged sword.

“Cardano has over 1.6 million users and its community is arguably the most active in the crypto sector. This is amazing, but also a developer’s worst nightmare, knowing that their DApp cannot handle this traffic …

The result of this fact is that almost every project on Cardano is extending its start-up time to rigorously test the infrastructure because if they deploy their DApp now they will be destroyed.

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