- ADA failed to break beyond a dollar in the latest rally.
- Over 80% of investors are underwater and in need of a September-like breakthrough.
- Analysts continue to hold on to the possibility of a $5 milestone in 2022.
According to recent data from IntoTheBlock, only about 501,290 ADA addresses were flipped into the profit zone on the hill of its latest near-milestone rally. At a current price of $0.89, the latest figure represents a 4% decline from its year-to-date cost-value profitability analysis, which bestowed an additional 150,000 addresses in such green gains.
Since the start of the year, Cardano has struggled to lift close to 80% of its total active addresses out of the no-profitability zone. Even with an upward shift in its price, there still exist 4.3 million addresses (consisting mostly of addresses less than six months old who bought the peak) patiently hoping for a near $3 rebound. Back in September 2021, the Charles Hoskinson project had sniffed the decks of the much-coveted $3 value breakthrough after the announcement of its latest smart contract support hit mainstream.
Its $3.10 sugar rush attracted close to 800,000 new addresses, which believed the periods of its 1600% single-year value increase were enough to signal for a profitable invitation. While every single one of these new addresses has remained underwater over the last six months, there are still hopes that Cardano will reach the much-anticipated $5 strong mark given the possibility of increased institutional adoption in 2022.
An upside to its downside is the growing number of ADA holders, signified by a sharp drop in daily transactions in correlation with price. ADA has shed off close to 66% of its September transaction volume, which stood at $137.4 billion. Only $43 billion worth of ADA is currently making the traffic rounds. Beyond the rational assumption that ADA holders are learning to hold, this may most likely mean close to 80% of its total active addresses are not giving up on their current loss state – a good sign for the long-term aspiration of the self-acclaimed Ethereum killer.
Internally, analysts have attributed Cardano’s lack of significant institutional milestone achievements since its smart contract launch as a reason for a drawback on its momentum. But the fledgling altcoin which sits pretty at the 9th spot is also a victim of a flurry of US regulatory back and forth, including the forthcoming federal rates hike and the ongoing Russia-Ukraine conflict. Like other top cryptos, it has also taken a fair dent from the wave of inflation gripping the US and Europe.