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 explained 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.
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.
Image Credit
Featured Image via Unsplash
Source: Read Full Article