As Cardano (ADA) continues to struggle in a ranging market, the eighth-largest cryptocurrency has lacked the much-needed momentum to exit the present consolidation.
As a result, prominent market analyst Ali explained that Cardano is mimicking a historical trend witnessed between 2018 and 2020.
Therefore, if history repeats itself, ADA is not out of the woods yet because it might be locked in this consolidation zone until July 2024.
The consolidation experienced between 2018 and 2020 triggered a mega rally, which saw Cardano skyrocket to historic highs of $3.058 in 2021.
Nevertheless, Ali pointed out that based on various exemptions, ADA could witness a breakout as early as December this year.
Cardano Has Been on the Receiving End
The sluggish momentum in the Cardano network has made the number of addresses in loss skyrocket to 93.61%.
According to IntoTheBlock data, the number of addresses in loss has surged to 4.71 million based on the witnessed bearish momentum.
Notably, ADA addresses showcasing a positive net worth stood at 192,270, which is 4.32% of the total.
Therefore, the current ranging market has caused many Cardano holders to be on the receiving end based on dwindling profitability.
Meanwhile, Cardano’s Charles Hoskinson recently cleared the air about the failure of the Hydra upgrade. He disputed claims of the upgrade being unable to process transactions faster, as reported by ZyCrypto.
The Hydra upgrade is set to be a game-changer because it will enhance Cardano’s on-chain performance, API endpoints, and node synchronization.
Despite the consolidation and bearish momentum witnessed in the Cardano network, all hope is not lost based on a long-term bullish outlook. For instance, ADA is among the leading blockchains in development activity thanks to its enhanced consensus mechanism, interoperability, and sustainability.