- 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.