ADA Price Impact as Cardano Staking Valuation Surpasses 5.7 Billion Dollars

Crypto News- Cardano (ADA) is currently facing challenges in maintaining its price above $0.25, with a recent dip that has brought its October losses to around 12%. On-chain analysis suggests that Cardano’s staking activity could influence the price action in the coming weeks.

ADA Price Impact as Cardano Staking Valuation Surpasses 5.7 Billion Dollars

The price of ADA failed to breach the psychological resistance level of $0.30, despite a promising start in October 2023. On-chain data reveals that investors are turning to passive income protocols as a way to limit their losses.

Historical data suggests that ADA holders tend to increase their staking activity during periods of sharp price declines, which could positively impact prices by temporarily reducing the available supply. As this is the highest level of ADA staking activity since June 2023, it may help support the price above the $0.23 level.

Despite the overall bearish sentiment in the altcoin market, driven in part by geopolitical events in the Middle East, strategic traders are taking advantage of lower ADA prices to accumulate more of the cryptocurrency. Order book data from recognized exchanges indicates that bullish traders have active orders to buy 350 million ADA at an average price of $0.25, slightly higher than the corresponding 320 million ADA sell orders. Demand currently exceeds supply by more than 30 million ADA.

In addition to increased staking and buying interest from strategic traders, the In/Out of the Money (IOM) chart suggests that the $0.24 level could serve as strong support, with 64,000 addresses having purchased 1.2 billion ADA at that price. This support cluster may hinder the bears from pushing the price significantly below current levels.

However, if bearish momentum intensifies, there is a possibility that Cardano’s price could approach the $0.23 level. Overall, the combination of increased staking, strategic buying interest, and support at key levels suggests that Cardano may have some stability in the face of bearish market sentiment.