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Cardano: Crypto Analyst Says $ ADA Investors and Traders Should Be Cautious

A popular crypto analyst and market strategist has warned its followers about Cardano’s native token, stating that it was signs of fundamental weakness.

In a recent YouTube video, the InvestAnswers host told viewers that Cardano’s chart is raising red flags. The popular analyst said comparing long-term owners with market speculators for $ ADA is worrying.

According to the analyst, only 6.95% of $ ADA investors are long-term owners (i.e., have held their $ ADA for more than a year), with 70% falling into the “cruiser” category or those who think their coins are less than one Year. The remaining part of the $ ADA investors are active day traders.

The show host compared Cardano’s weak long-term bond to Ethereum, which around 60% of its investors boast of holding ETH for the long term.

In addition, the analyst highlighted Cardano’s low number of active addresses as another red flag for the project.

As reported by The Daily Hodl, the analyst said:

Now let’s look at active addresses. Another interesting statistic to dive into. It’s not just the number of addresses, the chain has three million addresses, only 4% are active. And remember, if you put Ethereum into perspective again, they have 66 million addresses. And, despite a large number of long-term owners, they also have a good level of activity.

Data from Google Trends showed a similar lack of investment interest in Cardano, with searches for $ ADA falling to an annual low.

Disclaimer of liability

The views and opinions of the author or any other person mentioned in this article are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading in crypto assets carries the risk of financial loss.

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