- ADA demand in the derivatives market remained high.
- The RSI and stochastic metrics were in overbought positions.
Cardano [ADA] has performed quite well during the last bull market as its price rose by double digits. But things could get even better, as the token has also outperformed its contemporaries on a social level.
Read Cardanos [ADA] Price prediction 2023-24
Things on the ground looked different, however, as the ADA’s daily chart was in the red. Will Cardano’s excellent social metrics positively impact the token’s price soon? Let’s find out.
Cardano’s last week looks ambitious
Thanks to bullish market conditions, ADA’s price rose significantly over the past week, allowing investors to make profits. From CoinMarketCapthe ADA has risen more than 12% in the past seven days.
In fact, Cardano’s performance on the social front remained at the top as of October 28.
⚡ Coin of the day by social activity – @Cardano $ADA
October 28, 2023#Cardano is a decentralized blockchain and #ADA is the coin that powers the Cardano network. pic.twitter.com/v79Q3vsoMr— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) October 28, 2023
CryptoDep, a popular X (formerly Twitter) handle that posts updates related to the crypto space, recently pointed out that ADA was the top coin in terms of social activity. The tweet stated that ADA’s social engagement was 138 million, while its social dominance was 10.7%.
Furthermore, LunarCrush’s metrics also looked quite bullish on the token. For example, Cardano had a Galaxy score of 48 and Altrank was at 19.
While these statistics suggested a further upward trend in the token price, the reality was different. Notably, the price of ADA has fallen by more than 1.5% in the past 24 hours.
At the time of writing, it was trading at $0.2914 with a market cap of over $10.8 billion, making it the eighth largest crypto. Additionally, ADA‘s Social Volume metric has dropped slightly in recent days.
Weighted sentiment also fell, meaning investors had more negative things to say about the ADA token than positive ones. Furthermore, the green Binance Funding Rate indicated that ADA demand in the derivatives market was high at the time of writing.
Source: Santiment
What can you expect from Cardano?
CryptoQuant’s facts revealed that both ADA’s Relative Strength Index (RSI) and stochastic index were in overbought positions. This clearly meant that the token could witness an increase in selling pressure, which could lead to a further decline in its price in the coming days.
Source: CryptoQuant
Is your portfolio green? look at the ADA Profit Calculator
Like the RSI, Cardano’s Money Flow Index (MFI) was also in overbought territory. In fact, ADAThe company’s price reached the upper limit of the Bollinger Bands, further increasing the likelihood of a continued downtrend.
Nevertheless, the Chaikin Money Flow (CMF) remained in favor of the bulls as it registered an upswing.
Source: TradingView
