• Cardano (ADA) is poised to hit $0.30 after stakers reportedly locked up $30.6 million worth of ADA in five days.

• However, analysts have predicted that there could be resistance at $0.28 as 39,720 addresses purchased 2 billion ADA at that price point. 

Cardano (ADA) suffered a major scare in the recent market pullback after breaking a key support level to decline by 43 percent from its 2023 high of $0.46. In the past few days, the asset has incredibly held its ground at the $0.24 support line and sustained that price point for a while before appealing to investors who are slowly moving into the buying position.

As of press time, ADA’s market sentiment had moved from bearish to neutral, and the value had surged by 3 percent in the last seven days to trade at $0.266459. 

Analysts have observed that Cardano staking which remained stagnant for almost a month is making progress. This indicates that the supply of the asset staked on various Decentralized Finance (DeFi) platforms is moving up.

A quick look at the trading activities between August 24 and August 29 shows that 117 million coins were locked up in smart contracts by Cardano holders. Based on the current price, the staked tokens are worth around $30.6 million. Market analysts explain that increased staking usually acts as a catalyst for a rapid price surge when demand records a slight increase. This is because a considerable amount of tokens are removed from the market supply temporarily. 

More Price Analysis of Cardano (ADA)

The Market Value to Realized Value (MVRV) ratio shows that investors who entered the market in the last 30 days could likely record losses of up to 11 percent when they exit their positions now. This position is also reportedly validated by In/Out of Money Around Price data.

Based on historical data, Cardano investors would hold onto their investment until the potential loss flips to a 5 percent gain. This could send the price to $0.30. Regardless, the movement to this predicted price point would not be a smooth one as rejection could be recorded at $0.28.

Data shows that 39,720 addresses averagely purchased 2 billion ADA at $0.28, and could be tempted to break even. If that happens, an early bearish reversal could be recorded. When bears push the price below $0.25, the $0.30 price prediction could be invalidated.

Interestingly, there is another twist. 70,000 addresses purchased 515.5 million ADA at a minimum price of $0.25. This indicates that the asset may not easily break this support level. 

Another analyst has disclosed that Cardano needs a constant increased demand to hit historical prices with previously low demand. At the current price, investors could stand a chance of gaining 940 percent profit if it ever meets its previous demand.

According to the analyst, the staking validators and delegators of Cardano earn block rewards every five days. The rewards are both supply inflation and transaction fees. It currently has 9.9 billion as reserves and 29.88 million ADA monetary expansion every five days. With this, the asset can trade at an unimaginable height when it hits its all-time high market cap. 

ADA has a 24-hour trading volume of $354,138,337 and a safety score of 47/100. 

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