Cardano’s ADA token continues to face significant downward price pressure, with active wallets over the past year seeing an average investment loss of 43%. Despite the extended decline, on-chain analytics from Santiment indicate the extreme negative sentiment and funding rates may be signaling a potential buying opportunity for key stakeholders.
Cardano (ADA) has been suffering a prolonged series of losses, trading at lower ranges amid evolving market dynamics. This has led investors to question the token’s viability as its losses extend.
A recent report from Santiment revealed average Cardano wallets active over the past year have netted a return of -43%. “This extreme negative MVRV value is generally an indicator of $ADA being in an ‘opportunity’ or ‘buy’ zone,” the analytics firm stated.
Santiment explained that when average returns are severely negative, it can indicate a looming turnaround in the zero-sum game of trading. “When other traders are in severe pain, key stakeholders and professional traders are intrigued by this due to the lowered risk,” their analysis noted.
Furthermore, Cardano’s funding rate on Binance is seeing its largest ratio of shorts compared to longs since June 2023. This condition, where traders clearly expect further decline, is historically viewed as another bottom signal.
Looking ahead, according to CoinCodex ADA stats, Cardano is forecasted to hit approximately $0.39 by the end of 2026. Their models project a price of around $0.40 by 2030.
