HomeNewsCardano's Staking Surge: $5.7 Billion Locked In, How Will ADA's Price Respond?

Cardano’s Staking Surge: $5.7 Billion Locked In, How Will ADA’s Price Respond?

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  • ADA staking hits a 3-month high with $5.7 billion, representing 65% of Cardano’s total market cap.
  • Bullish sentiment prevails as traders actively buy the dip, setting the stage for a potential price rebound.

In light of a recent online article on the update of Cardano, as October 2023 begins, despite Cardano’s struggle to surpass the $0.30 mark, on-chain metrics display a different narrative. ADA staking has experienced a surge, reaching a 90-day peak of 22.97 billion coins. As of the last week of September, 22.4 billion ADA were staked across diverse platforms. This figure has since witnessed an addition of 550 million ADA, culminating in a total staking value of $5.7 billion, as per the insights from “StakingRewards”.

The Relationship Between Staking and Price Dynamics

Historical patterns within the ADA ecosystem underscore an intriguing trend: during sharp price drops, ADA staking usually rises, and the converse is also true. Given that the present staking activity is the highest since June 2023, there is potential for the ADA price to maintain itself above the $0.23 threshold, primarily because staking often decreases the available market supply.

Bullish ADA Traders: Buying the Downturn

In the wake of a bearish sentiment sweeping the altcoin domain, largely attributed to tensions in the Middle East, ADA offers a contrasting scene. Long-standing Cardano investors are diving deeper into staking while opportunistic traders are keen on capitalizing on the slump, purchasing more ADA. A consolidated view from 10 leading crypto exchanges affirms the dominance of bullish players in the ADA spot market. Active buy orders for ADA currently sit at 350 million, averaging a price of $0.25 per ADA – a noticeable jump compared to the 320 million ADA sell orders. The available data suggests a buy order excess by around 30 million ADA.

Prospects for ADA Price Amidst Bearish Winds

Analyzing on-chain indicators, there’s a strong case to be made for Cardano’s price. It is likely to hold firmly against mounting bearish pressures. The In/Out of the Money chart, which maps out the entry price distribution for current ADA holders, reinforces this sentiment. A key observation from this chart is the formidable $0.24 support level, backed by 64,000 addresses that collectively acquired 1.2 billion ADA at a starting price of $0.24. This massive support cluster could serve as a significant barricade, hampering any major bearish push below prevailing price points.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628