52% of Cardano addresses are losing profitability despite high capital inflows

For the past two months and all of November, Cardano (ADA) has seen no significant gains in terms of price or network growth. In fact, its market cap has been hovering between $ 65 billion and $ 70 billion for the most part, and although that number has dropped to $ 63 billion at press time, investors don’t seem to have any signs of it.

Strong Cardano tributaries

This week, ADA achieved weekly inflows of $ 16.4 million

Capital flows into some assets | Source: CoinShares

After Ethereum, this is the highest number for any other cryptocurrency on the market. This can be interpreted as a sign that the ADA price has fallen, but not yet fallen.

However, none of this would be a problem if Cardano investors weren’t affected by the lack of price volatility.

ADA has been stuck below the $ 2.28 resistance as of September 20th. This has been an important level for a very long time. In particular, ADA was unable to close despite several attempts. Even intraday trades that hit high above the resistance point cannot help Cardano in any way.

Cardano price promotion | Source: TradingView

Despite the short-term consolidation, ADA managed to hold above the USD 1.90 support. However, this level is currently being tested.

In the past two months, ADA has seen a 38% correction, down 18.8% in the last week alone.

What’s wrong with the investors?

ADA investors suffer badly. In just two months, 52% of all Cardano addresses have lost their profitability. Additionally, the risk-adjusted rate of return for Cardano continues to decline and remains in the negative 2.08 range at press time.

Profit from Cardano addresses | Source: Intotheblock

Even so, investors continued to be attracted as active names hit a multi-month high on November 15 and have continued to rise since then.

Cardano’s business address | Source: Intotheblock

In addition, the number of transactions reached 242,000 yesterday, marking an all-time high (ATH) for ADA.

Number of Cardano transactions | Source: Intotheblock

Put simply, with the market as a whole continuing to be greedy, it wouldn’t be surprising if Cardano were to gain more volume. It is difficult for investors to predict when they will be profitable again.

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