More traders and investors start buying ADA despite negative price performance on the market
The accumulation phase for Cardano continues as more addresses continue to buy coins with balances on addresses reaching 12.4 billion ADA after three months of accumulation in 2022, as InTheBlock reports.
Unfortunately, it does not help Cardano to perform well on the market since the cryptocurrency is in the process of forming its seventh negative month in a row. The negativity in the price action of ADA is most likely tied to the holder distribution on the network.
With the majority of ADA positions open at or near the ATH, the coin is under constant selling pressure on each rally rally as more traders are eager to offset their losses by selling at a high. price a little higher.
How can accumulation help in the long term?
As mentioned earlier, the majority of Cardano short- and mid-term holders have entered the coin close to the ATH, hence, most likely dropping their holdings as soon as the cryptocurrency started rapidly losing its value, creating an insane amount of pressure on the coin.
With the accumulation outpacing the distribution trend, more buying power should flow into the market. According to the one-month chart of ADA, we can already see the effects since the average loss per month decreases from around 25% to 10%.
In the short- and mid-term, ADA is unfortunately losing more than 40% of its value despite the most recent recovery on the cryptocurrency market that brought the price a 20% to 40% increase.
At press time, Cardano is trading at $0.88 and has lost around 10% in the past three days. When it comes to yearly performance, 2022 could not bring positive price performance for ADA, and the asset is still moving in a strong downtrend.
