In light of Cardano’s recent price fluctuations, the ADA community has been buoyed by a bullish forecast from prominent analyst Ali Martinez. According to Martinez’s tweet, the current consolidation phase of Cardano eerily resembles the 2018-2020 period. If history repeats itself, ADA could remain within this consolidation phase until July 2024. Unless unforeseen events, such as the 2020 COVID-19 market crash, disrupt the pattern, ADA could potentially break out as early as December.
Martinez’s projections suggest that the token could experience a meteoric rise to the $6 mark in just over a year, marking a remarkable 2,448% increase from its current value of $0.248 per ADA. This optimistic outlook has injected renewed enthusiasm into Cardano investors, who have been speculating about the digital asset’s future amidst recent market turbulence.
Cardano Staking Valuation Hits $5.7 Billion
However, despite this optimism, ADA’s price has dipped just below the $0.25 mark on Tuesday, contributing to October losses of nearly 12%. On-chain analysis now sheds light on how Cardano’s staking activity might impact ADA’s price performance in the coming weeks.
Despite a positive start in October 2023, its price failed to breach the psychological resistance at $0.30. On-chain data reveals that investors are turning to passive income protocols as a means to mitigate their losses. This week, the market valuation of ADA coins staked reached a 90-day peak of $5.65 billion, which represents 65% of Cardano’s total market cap, as holders increasingly turn to staking protocols to safeguard their investments.
As of September 28, a total of 22.4 billion ADA coins had been staked across various staking platforms. This figure has since surged by another 550 million ADA, reaching a 90-day peak of 22.95 billion, according to StakingRewards, a staking data aggregator platform. This surge in staking provides insights into the dynamic fluctuations of coins currently held within smart contracts and typically positively impacts prices, temporarily reducing the available supply.
Historical data indicates that ADA holders tend to increase their staking activities during sharp price declines and vice versa. This recent surge in staking activity represents the highest level since June 2023 and may help support ADA’s price above the $0.23 threshold.
As of the latest data, ADA is currently trading at $0.2439. With the absence of distinct support levels, there are concerns that the token could potentially drop below the threshold. Recent market movements suggest a challenging path ahead for Cardano. The long-term trajectory remains uncertain, and time will reveal its ultimate direction.
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