In a dynamic week for Cardano, staking activity surged, propelling ADA coin valuations to a 90-day peak of $5.7 billion, constituting 65% of Cardano’s total market cap. This strategic move towards staking protocols emerges as a diplomatic shield against potential losses for ADA holders.
As per StakingRewards, a reputable platform aggregating staking data, as of September 28, over 22.4 billion ADA coins had been staked on different platforms. This number saw a notable increase, with an additional 550 million ADA being staked, reaching a peak of 22.95 billion over 90 days.
Amidst a bearish turn in sentiment in the wider altcoin market, fueled primarily by escalating geopolitical tensions in the Middle East, long-term Cardano investors are doubling down on staking. Simultaneously, strategic new entrants capitalize on falling prices by placing orders to acquire more ADA.
Data collated from the Order Books of ten reputable exchanges unequivocally indicates the ascendancy of bulls in the ADA spot market. The graph below underscores this narrative, depicting an active bid to procure 350 million ADA at an average price of $0.25, surpassing the corresponding 320 million ADA sell orders.
The Exchange Order Books graphic attests to the dominance of buy orders, eclipsing the sell side by over 30 million ADA. With staking activities on the rise, the trading supply is poised to dwindle further.
The on-chain indicators bolster the position that Cardano’s price may find solid support amidst the prevailing bearish sentiment. The In/Out of the Money (IOM) chart corroborates this outlook, pinpointing the $0.24 support level as a potential bulwark against further decline.
At this crucial juncture, 64,000 addresses have acquired 1.2 billion ADA at a minimum price of $0.24, forming a formidable support cluster. However, if the bears gather momentum, Cardano’s price could increase to $0.23.
For bullish investors, the crucial aspect worth monitoring is the ability of ADA to recapture the $0.30 threshold. Nonetheless, the most recent data indicates that 129,700 addresses have acquired 2.26 billion ADA coins at an average worth of $0.26. This move could cause a decline in Cardano’s worth if these investors decide to sell swiftly. On the other hand, if the resistance level of $0.30 is surpassed, it could act as a bullish signal, leading to a bullish trend and a rally towards the $0.30 range.
