After stagnating in September, the market started the fourth quarter with optimistic moves and most of the top altcoins gained momentum thanks to Bitcoin’s gains. However, ADA surprised market participants last quarter with an independent course and a seemingly slower path to a new ATH.
4-Hour ADA Price Chart | Source: Tradingview
While ADA didn’t take any major steps, maintaining the critical $ 2 level of support has been a huge relief for the holders. On the price front, it looks like ADA is struggling to move higher, but there are subtle signs that it will make a strong comeback amid many ecosystem-driven developments and positive indicators.
Cardano’s stablecoin acceleration
At the Cardano Summit 2021, Input Output HK (IOHK) announced a partnership with the payment gateway platform COTI. Under the agreement, COTI will become Cardano’s stablecoin platform and the official issuer of the network’s highly anticipated stablecoin Djed. For COTI, this partnership, along with listings on several exchanges such as Coinbase, Huobi and Crypto.com, acts as a catalyst for an upward move in Altcoins.
At the same time, COTI has seen an increase in social volume and social dominance over the past few days, while Cardano, which is usually higher in social volume, has seen a similar downward trend after the Flash crash. In addition, the DeFi liquidity protocol MELD is preparing the introduction of a gold-backed stablecoin in the Cardano network.
Both Djed and MELD stablecoins aim to make trading easier and more accessible for ADA holders. Djed’s features include adherence to upper and lower limits, a robust design in the event of a market crash, no bankruptcy and no withdrawal of reserves.
In addition, in notification Regarding the new partnership with Nigeria’s largest cellular network, Tingo Mobile, Cardano’s David Taylor also emphasized that the partnership between MELD, Tingo and Cardano can provide crypto services to millions of active subscribers. This will drive Cardano adoption in the country and bring Cardano to around 9 million customers across Nigeria.
The number of HODLers is increasing, but the profits are decreasing
On the adoption side, while Cardano’s new developments are strong, the number of profitable owners has dropped to 72% at the time of writing, according to the ITB’s in and out of money indicator. In fact, ADA’s month-long ROI has turned red after being green for most of the previous month. At the time of writing, the one-month ROI versus USD for ADA is -23.28%.
Depositing / withdrawing global money | The source: In the block
However, the decline in the number of profitable (in the money) addresses does not seem to stop ADA holders. In fact, ITB data shows the number of ADA holders hitting new ATHs this month is 245,600 addresses for a total of 5.62 billion ADA.
The source: In the block
As a result, while profits and ROI are declining, the ADA-Hodler remains steadfast. However, at the time of writing, ADA’s RSI is rebounding along with a decent price spike that could provide better market conditions to continue holding.
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According to AMBCrypto