Cardano (ADA) Getting Demolished: Crypto Market Review, October 13
As noted in a previous U.Today article, both the crypto and stock markets are getting ready for a volatility and outflow spike following a variety of macroeconomic events this week that may cause serious problems if they turn out negatively.
Cardano is in pain
The spike in selling pressure and active hedging coming from investors did not go unnoticed by assets like Cardano or even XRP, which has been rallying up for the last few weeks.
Today, Cardano is one of the biggest losers in the top 10 assets sorted by market capitalization. The Ethereum competitor is losing almost 6% of its value in the last 24 hours, with a total 13% plunge in the last three days against BTC and a 15% plunge against USD.
Even without the plunge we are seeing today, Cardano was in a tough spot in terms of profitability on the market. Less than 20% of ADA holders were in profit. After yet another price plunge, the number will most likely move toward the value of 10%.
Unfortunately, ADA is not the only asset that faced a large spike in selling pressure. XRP lost more than 6% of its value in the last 24 hours and dropped below its 200-day moving average, which could be a sign of an upcoming return in the downtrend.
Continuation of the bear market for ADA will make it one of the least profitable assets on the market as the cryptocurrency has been moving downward for the last 400 days.
$25 billion wiped out
According to the total market capitalization of the cryptocurrency market, more than $25 billion in assets have been wiped out by the market in less than 24 hours. The total market capitalization tumbled to $900 billion while being at almost $3 trillion in November.
Despite the massive sell-off in May, investors have been actively moving their funds away from the digital assets industry. Through the summer only, the market has lost more than $300 billion of capitalization.
On the positive side of things, the rapid drop in the total capitalization of the market will most likely lead to a more volatile recovery as greater funds inflows will lead to greater price performance.
Unfortunately, there are no signs of returning institutional or even retail investors on the market, as the majority of market participants do not believe in a recovery in the foreseeable future. According to the most recent CoinShares report, institutional investors provided around $10 million of inflows, which is a catastrophically low number, especially if we take into consideration the fact that a majority of those funds were sent into shorting ETFs.Source