On Tuesday (August 16), crypto analytics firm Santiment took a closer look at an interesting on-chain metric for Cardano ($ADA): “Ratio of Daily On-Chain Transaction Volume in Profit to Loss“.
Here is what Santiment says about the set of metrics related to “Transaction Volume In Profit Or Loss”:
“Those metrics show the aggregate amount of coins/tokens across all transactions on the network that moved in profit or loss for a given asset in an interval. There is also a metric which shows the ratio between transaction volume in profit and transaction volume in loss.“
As Santiment in May, when it introduced the metric “Ratio of Daily On-Chain Transaction Volume in Profit to Loss”, assets that are “seeing a high ratio of profit taking transactions” have “higher likelihoods of short-term price retracements” (which means “be careful”), and those assets that are “seeing a high ratio of transactions occurring while traders are in loss positions” have “higher likelihoods of short-term price bounces” (which means “be optimistic”).
Anyway, earlier today, Santiment tweeted that “the ratio of on-chain transactions as profit taking vs. selling at a loss is at its highest level of profit taking since the final week of March,” which means that traders need to be careful.
?? #Cardano sentiment is rather positive at the moment, and prices are +22% in the past 3 weeks. The ratio of on-chain transactions as profit taking vs. selling at a loss is at its highest level of profit taking since the final week of March. https://t.co/RfwCmR64gb pic.twitter.com/vsb3OdGskU
— Santiment (@santimentfeed) August 16, 2022
According to data by TradingView, on crypto exchange Binance, currently (as of 5:24 a.m. UTC on August 16), $ADA is trading around $0.549, down 4.18%vs USD in the past 24-hour period.
However, in the past one-month period, $ADA is up 25.92% vs USD.
