Bitcoin & Ethereum See Profit-Taking, While Cardano Is Seeing Capitulation
According to data from the on-chain analytics firm , Bitcoin (BTC) and Ethereum (ETH) have both been seeing the investors majorly selling at profits, while Cardano has seen the loss-taking outweigh the profit-taking.The indicator of interest here is the “Ratio of Daily On-Chain Transaction Volume in Profit to Loss,” which, as its name already suggests, tells us about how the loss-taking volume of any asset compares against its profit-taking volume.
The value of the metric seems to have been greater than one for most of these assets recently | Source:As displayed in the above graph, all of these assets, except for Cardano, have their Ratio of Daily On-Chain Transaction Volume in Profit to Loss sitting at positive values right now. Such values of the metric imply the profit-taking volume is currently greater than the loss-taking volume for these assets. Ethereum, in particular, seems to have been observing the most aggressive profit-taking spree recently, as the cryptocurrency has been seeing about 2.3 green transactions for every underwater movement.
Cardano has outright been seeing the loss-taking volume pulling ahead of the profit-taking one, implying that the investors have been going through capitulation. These loss sellers may be ditching the asset in favor of Bitcoin and others, who have offered greener pastures recently.
Historically, the dominance of profit-taking has been something that has led to tops for cryptocurrencies. Loss-taking, on the other hand, has often facilitated bottoms to form as weaker hands flush out in such events and stronger, more resolute investors take their coins. As such, Cardano has been behind the other top coins in this metric recently may mean that the coin could still have the potential to rise, whereas the others may be nearing possible tops.ADA Price
While Cardano has performed worse than the likes of Bitcoin and Ethereum recently, its returns have still not been that bad as the asset is up 8% over the past week and trading around $0.63.Looks like the price of the asset has been surging recently | Source: