Cardano Holders Stake 23 Billion Coins
Date: 2023-10-12 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Cardano's Price Struggles and Staking Surge
Despite a positive start to October, Cardano's price couldn't break through the crucial $0.30 resistance level. On-chain data reveals that ADA holders are turning to decentralized finance protocols to limit their losses.
ADA Staking Reaches a 90-Day High
This week, the total value staked in ADA reached a 90-day high of $5.7 billion, accounting for 65% of Cardano's total market capitalization.
According to StakingRewards, on September 28, various decentralized finance platforms held 22.4 billion tokens. By October 10, this number had increased by 550 million, reaching a 90-day high of 22.95 billion.
Sudden Increase in Locked Coins
Historical data suggests that Cardano holder staking activity typically rises during sharp price downturns and vice versa. If this trend continues, a supply shortage could help keep the price above the $0.23 support level.
Market Participants Actively Buy the Dip
This week, the overall sentiment in the altcoin market turned bearish, mainly due to the escalating crisis in the Middle East. However, bulls still dominate the Cardano spot market.
As shown in the chart below, traders placed buy orders for 350 million ADA and sell orders for 320 million ADA at an average price of $0.25 on centralized exchanges.
Price Forecast for ADA: Bulls to Hold $0.23 Support
The above factors support the belief that Cardano's price is likely to hold at $0.23 amid growing negative sentiments.
The In/Out of the Money chart confirms this forecast, indicating that the $0.24 support level may prove challenging for bears. As seen in the chart below, 64,000 addresses acquired 1.2 billion ADA at this price.
