60% Cardano [ADA]83% of ARB holders lose money: analyzing why

• ADA price may break through support and reach new lows.
• ARB may witness further decline as altcoin demand continues to decline.

Cardano [ADA] and arbitration [ARB] are the top two Layer 1 (L1) and Layer 2 (L2) assets with the highest loss-making holder count, IntoTheBlock noted in a recent https://twitter.com/intotheblock/status/1785332101174235606 on X (formerly Twitter).

According to the on-chain data provider, 60% of ADA holders are missing. For ARB, 83.43% of its holders do so at losses.

The values ​​of both assets have decreased significantly in the last month. According to CoinMarketCap’s data, the price of ADA has plummeted 30% in the last 30 days, while ARB has lost 35% of its value during that period.

More downsides in the meantime for ADA

An evaluation of ADA price movements on a 3-day chart revealed the probability of a further decline in its value.

Chart readings showed that the coin’s price fell below its 20-day and 50-day moving averages (MA) in early April.

When the price of an asset falls below these MAs, it often indicates a shift from bullish to bearish momentum.

If it is accompanied by low demand for that asset, it offers confirmation that the market is in a bearish trend and the price of the asset may continue to fall.

A look at ADA’s Relative Strength Indicator (RSI) and Money Flow Index (MFI) indicators confirmed the decline in demand for ADA by market participants.

At the time of writing, ADA’s RSI was 35.60, while its MFI was 32.13.

The values ​​of these indicators showed that selling activity slightly exceeded coin accumulation among ADA traders.

Additionally, ADA’s double-digit price drop over the past month has forced it to trade at its support level of $0.44 at press time.

Although a descending triangle has formed and bullish breakouts are normally expected, there is a high probability that the bearish outlook will push its price down to $0.26.

However, if the bulls can regain control, the coin could break out into an uptrend to change hands at $0.88.

ARB has little to offer

At press time, ARB was trading at $1.03. Its movements on a 1-day chart showed that it has also witnessed a significant decline in demand. Its RSI and MFI were below their respective centerlines at the time of this publication.

Read Cardano [ADA] Price prediction 2024-25

Signaling that the market was under bearish influence, its Elder-Ray index, which measures the relationship between the strength of buyers and sellers of altcoins in the market, returned a negative value.

When this indicator is negative, bearish power dominates the market.