CARDANO STAKING REACHES $5.7 BILLION - ELEVENEWS

ADA price has fallen below $0.25, signaling a 12% loss in October. However, beneath the surface, intriguing developments are taking place.

Cardano (ADA) has been in the spotlight due to a recent increase in staking activity and potential implications on market dynamics. ADA enthusiasts and investors have turned to staking protocols to mitigate losses.

Recently, the amount of ADA staked reached a 90-day high, reaching 23 billion, representing 65% of Cardano’s total market capitalization, a total of $5.69 billion.

This increase in participation is significant as it temporarily reduces the supply available on the market, which could have a positive impact on prices.

Historical data suggests that ADA holders often increase staking during times of sharp price declines, highlighting the perceived benefits of staking during times of uncertainty.

This new level of ADA staking activity, which has not been seen since June 2023, could play a pivotal role in keeping the ADA price above the $0.23 support level.

STRATEGIC MOVES AMID BEARISH SENTIMENT FOR CARDANO

While long-term Cardano investors opt to participate, new strategic participants are taking advantage of opportunities to purchase ADA at discounted prices.

Data from recognized exchanges shows that bullish traders have taken the lead, with buy orders of 350 million ADA at an average price of $0.25, slightly outperforming the corresponding sell orders of 320 million ADA. This bullish dominance further strengthens the ADA spot market.

The data suggests that ADA price will likely maintain a solid support level despite the growing bearish sentiment. The In/Out of Money (IOM) chart reveals that the $0.24 support level could represent a significant hurdle for the bears.

Around 64,000 addresses have acquired 1.2 billion ADA at a minimum price of $0.24, forming a major support group.

In case the bearish momentum intensifies, ADA price is likely to approach the $0.23 range. However, if the bulls can regain control and push the price back to $0.30, it is important to note that around 129,700 addresses hold 2.26 billion ADA at an average price of $0.26. A quick sell-off by these addresses could lead to a correction in ADA price.

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