Cardano Staking Reaches All-Time High at $5.7 Billion: How Will It Impact ADA's Price?

• Cardano investors turn to stake to limit losses as ADA faces resistance at $0.30.
• Staking boosts ADA price by reducing available supply during market uncertainty.

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Cardano (ADA) investors are adopting a strategic approach to safeguard their investments in a dynamic crypto market landscape. As the price of ADA faces resistance at the $0.30 mark, on-chain data reveals a surge in staking activity. This article explores the recent developments in Cardano’s staking ecosystem, its impact on price, and the changing sentiments among investors.

Cardano, often touted for its robust and sustainable blockchain technology, has caught the attention of investors looking for passive income avenues. Recent data indicates a notable increase in ADA staking, with the number of staked ADA reaching a 90-day peak of 22.97 billion ADA, equivalent to a staggering $5.7 billion. This amount represents a significant portion, approximately 65%, of Cardano’s total market capitalization.

ADA holders seeking to mitigate potential losses have strategically embraced staking. They staked 22.4 billion ADA coins across various platforms on September 28, and since then, they have staked an additional 550 million ADA, pushing the figure to its current peak.StakingRewards, a reputable staking data aggregator platform, has been tracking this surge in staking activities.

One key dynamic of increased staking is its positive influence on ADA’s price. Staked ADA coins are temporarily locked up within smart contracts, reducing their immediate availability for trading. This supply restriction can bolster ADA’s price, especially during periods of market uncertainty. Historical data indicates that ADA holders tend to increase their staking activities during sharp price declines, potentially contributing to price stabilization.

Investor Sentiments Amid Geopolitical Turmoil

The broader sentiment surrounding the altcoin market has taken a bearish turn recently, partly driven by escalating geopolitical tensions in the Middle East. While long-term Cardano investors remain committed to staking their holdings, strategic new entrants see an opportunity to accumulate ADA at lower prices. This shifting sentiment is evident in the order books of major exchanges.

Bulls Dominate ADA Spot Market

A closer look at the order books of recognized exchanges reveals an interesting trend. Bullish traders have actively placed orders to purchase 350 million ADA at an average price of $0.25. In comparison, the corresponding sell orders total 320 million ADA. This slight surplus of buy orders indicates the dominance of bullish sentiment in the ADA spot market.

The Exchange Order Books chart, which tracks the number of active buy and sell orders across cryptocurrency exchanges, reinforces this bullish sentiment. The buy/bid side significantly outpaces the sell/ask side, with demand surpassing supply by more than 30 million ADA. When combined with the increasing staking activity, this suggests a further reduction in the available trading supply.

Price Predictions and Key Support Levels

As Cardano’s price hovers around the $0.23 support level, on-chain indicators and investor sentiment become crucial factors. The In/Out of the Money (IOM) chart, which illustrates the entry price distribution of current Cardano holders, indicates that the $0.24 support level may prove challenging for bearish forces.

Over 64,000 addresses have acquired 1.2 billion ADA at a minimum price of $0.24, forming a substantial support cluster. However, Cardano’s price could test the $0.23 level if bearish momentum strengthens.

Scenarios for ADA Price

The future trajectory of Cardano’s price hinges on various factors. Should ADA reclaim the $0.30 resistance level, it could pave the way for a bullish rally. However, this scenario seems distant now, as 129,700 addresses have accumulated 2.26 billion ADA at an average price of $0.26.

If these holders decide to sell swiftly, it may lead to a price retracement. However, breaching the $0.30 resistance level could usher in a new phase of price growth for Cardano.

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