Will Cardano’s popularity be enough to drive ADA’s bull run?
- ADA’s demand in the derivatives market remained high.
- The RSI and stochastic metrics were in overbought positions.
Cardano [ADA] has performed pretty well in the latest bull market, as its price went up by double digits. But things could get even better, as the token has outperformed its contemporaries on the social front as well.
Read Cardano’s [ADA] Price Prediction 2023-24
However, things on the ground were looking different as the ADA’s daily chart was in the red. Will Cardano’s outstanding social metrics have a positive impact on the token’s price anytime soon? Let’s find out.
Cardano’s previous week looks ambitious
Thanks to the bullish market condition, ADA’s price rallied substantially over the last week, allowing investors to earn profits. As per CoinMarketCap, ADA was up by more than 12% in the last seven days.
In fact, Cardano’s performance on the social front remained on top as of 28 October.
— 🇺🇦 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 mentioned that ADA’s social engagement reached 138 million, while its social dominance touched 10.7%.
Moreover, LunarCrush’s metrics also looked pretty bullish on the token. For instance, Cardano had a Galaxy score of 48, and its Altrank stood at 19.
Though these metrics suggested a further uptrend in the token price, the reality was different. Notably, over the last 24 hours, ADA’s price dropped by more than 1.5%.
At the time of writing, it was trading at $0.2914 with a market capitalization of over $10.8 billion, making it the eighth-largest crypto. Additionally, ADA’s Social Volume metric dropped slightly in the last few days.
Its Weighted Sentiment also dropped, meaning that investors had more negative things to say about the ADA token than positive. Moreover, the green Binance Funding Rate indicated that ADA’s demand in the derivatives market was high at press time.
What to expect from Cardano?
CryptoQuant’s data revealed that both ADA’s Relative Strength Index (RSI) and stochastic were in overbought positions. This clearly meant that the token could witness an increase in selling pressure, which could cause a further drop in its price over the days to follow.
Is your portfolio green? Check out the ADA Profit Calculator
Like the RSI, Cardano’s Money Flow Index (MFI) was also in the overbought zone. In fact, ADA’s price touched the upper limit of the Bollinger Bands, further increasing the chances of a continued downtrend.
Nonetheless, the Chaikin Money Flow (CMF) remained in the bulls’ favor as it registered an uptick.