Cardano (ADA) Staking Activity Could Shape ADA Price Action
The price of Cardano (ADA) has dropped below $0.25, resulting in October losses of around 12%. On-chain analysis indicates that Cardano staking activity may have an impact on ADA’s price in the coming weeks.
Despite a positive start to October, Cardano’s price was unable to break the psychological resistance at $0.30. On-chain data reveals that investors are turning to passive income protocols to limit their losses.
The Number of ADA Staked Reaches a 90-day Peak
The market valuation of ADA coins staked has reached a 90-day peak of $5.7 billion, which accounts for 65% of the total Cardano market capitalization. Holders are increasingly utilizing staking protocols to mitigate their losses.
According to StakingRewards, as of September 28, a total of 22.4 billion ADA coins were staked across various platforms. This number has since increased by another 550 million ADA, reaching a 90-day peak of 22.95 billion.
Increased staking tends to have a positive impact on prices as it temporarily reduces market supply. Historical data shows that ADA holders often increase staking during periods of sharp price declines.
Strategic Traders Capitalize on Falling Prices
The overall sentiment surrounding the altcoin market has turned bearish due to the escalating crisis in the Middle East. While long-term Cardano investors are staking their coins, strategic traders are taking advantage of falling prices by buying more ADA.
Data from recognized exchanges confirms that bullish traders dominate the ADA spot market. Active orders to buy 350 million ADA at an average price of $0.25 outweigh the corresponding sell orders of 320 million ADA.
Combined with increased staking, the available trading supply is expected to decrease further.
Bulls Can Hold the $0.23 Support
The on-chain indicators suggest that Cardano’s price will likely hold a high support level despite the growing bearish sentiment. The In/Out of the Money (IOM) chart shows that the $0.24 support level poses a major obstacle for bears.
If bearish momentum intensifies, Cardano’s price could approach $0.23. However, if ADA price can reclaim $0.30, the bulls may regain control and push the price towards that range.
Hot Take: Cardano’s Staking Activity and Strategic Traders Support ADA Price Stability
Cardano’s recent dip in price has led to increased staking activity as investors seek passive income opportunities to limit losses. The number of ADA coins staked has reached a 90-day peak, reducing market supply and potentially supporting the price above the $0.23 support level.
Additionally, strategic traders are taking advantage of falling prices by buying more ADA, indicating bullish sentiment in the spot market. The combination of increased staking and decreasing trading supply could contribute to ADA price stability in the near future.
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