ADA staking has reached a 3-month peak at $5.7 billion, which makes up 65% of Cardano’s entire market value. There’s a positive outlook as traders are actively purchasing during price declines, indicating a possible price recovery ahead.
In a recent online article about Cardano’s October 2023 update, even though Cardano’s struggle to surpass the $0.30 price mark is evident, on-chain metrics tell a different story. ADA staking has seen a significant increase, reaching a 90-day high of 22.97 billion coins.
In the last week of September, there were 22.4 billion ADA staked on various platforms. Since then, an additional 550 million ADA has been staked, totaling $5.7 billion, according to “StakingRewards.”
Staking and Price Dynamics Interconnection
A curious pattern in the ADA ecosystem becomes evident when we look at history. When ADA prices take a sharp dip, more people tend to stake their ADA coins, and the opposite is also true – when staking activity rises, prices often go down. Now, with staking activity at its highest point since June 2023, there’s a chance that ADA’s price could stay above the $0.23 level. This is because staking reduces the amount of ADA available for trading in the market.
Bullish ADA Traders Buying the Dip
While the rest of the altcoin market is facing a bearish mood due to Middle East tensions, Cardano’s ADA tells a different story. Long-time Cardano investors are staking more, and opportunistic traders are taking advantage of the price drop to buy ADA. Information from 10 major crypto exchanges confirms the dominance of bullish players in ADA’s spot market.
There are currently 350 million ADA in active buy orders, with an average price of $0.25 per ADA, which is higher than the 320 million ADA sell orders. This data suggests there’s an excess of around 30 million ADA in buy orders.
ADA Price Outlook Amid Bearish Trends
When we look at on-chain data, it suggests that Cardano’s price is poised to withstand the growing bearish pressure. One of the indicators, known as the In/Out of the Money chart, is especially reassuring. This chart shows that there’s a strong support level at $0.24. Around 64,000 addresses bought a total of 1.2 billion ADA at this price, creating a substantial support base. This support cluster could act as a significant barrier, making it difficult for prices to drop significantly below current levels.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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