The Potential Price Rally of ADA Coin
The Cardano (ADA) price made a run at $0.40 on Tuesday but was unable to break through. Recent on-chain analysis suggests that the shift in Cardano staking dynamics could propel the ADA price rally.
Cardano Staking Valuation Has Hit Historic Peak
The recent spike in Cardano staking has led to a surge in the market. The total ADA staked in smart contracts is now worth $8.9 billion, about 65.02% of total coins in circulation. The increased staking activity indicates growing confidence in the network, creating supply-demand imbalance and upward pressure on prices.
The 15% increase in Cardano staking between September 28 and November 21 has corresponded with a 40% ADA price rally.
Staking Rewards Rate Have Now Exceeded Inflation Rate
On-chain data shows an increase in rewards allocated to stakers. The ADA Reward Rate surpassed the inflation rate of 2.63%, indicating that stakers are earning rewards at a higher rate than new tokens are being introduced.
ADA Price Prediction: Early Rebound From $0.35?
Based on the on-chain metrics, Cardano’s price looks set to reclaim $0.40. The Global In/Out of the Money (GIOM) data also supports this positive forecast, showing that a breakout above $0.40 is likely if investors hold firm.
The bulls could establish a support buy-wall at $0.33, which is likely to prevent a major bearish reversal.
Hot Take: ADA on the Verge of a Significant Price Rally
The recent surge in Cardano staking has created a bullish outlook for the ADA price. The increased staking activity and rewards rate exceeding the inflation rate point towards a potential price rally, with $0.40 being a key resistance level to watch. If the current staking dynamics persist, ADA may experience a significant upswing in the coming weeks.
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