The well-known strategist is now warning investors and traders ADA, saying that the sixth-largest cryptocurrency is showing signs of fundamental weakness.
In a new video, InvestAnswers analyst and presenter looks at the chart of holders versus an ADA speculator and the data looks bad for the smart contract platform.
“Looking at the blockchain data on ADA holders versus speculators, I think that’s completely correct, but I was blown away by ADA’s long-term holders percentage, which is very very strange. Only 6.95% of holders hold ADA for more than 1 year. 70% are medium-term holders. That means they have had the coin for 12 months or less and 25% are traders. Meanwhile, long-term holders of ETH account for 60%.”
Next is the number of active addresses, which according to InvestAnswers is another red flag for ADA.
“Now, let’s look at the number of active addresses. Another interesting statistic you need to learn: the number of addresses. The chain has 3 million addresses, but active ones account for only 4%. Continuing the comparison with Ethereum, the network has 66 million addresses. Despite the large number of long-term holders, they also have a good level of activity.”
Looking at Google Trends data, the strategist emphasized that retail investors are currently showing little interest in the sixth largest coin.
“So let’s look at Google trends. Are people interested in Cardano? Global Google Trends over the past 12 months suggest we’re back to a one-year low. And that means no one seems to care about Cardano.”
Although the analyst is pessimistic about the outlook for ADA, strategist Capo believes that ADA is showing signs of strength after a successful retest of the $1.20 area as support.
According to Capo, ADA has a 580% increase in targeting ability.
“ADA retests the second ATH before. As long as it stays above this level, $3-4 will be the next target (last ATH) and if it consolidates above it we will probably see $10.”
The source: Capo/Twitter
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Minh Anh
According to Dailyhodl
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