ADA demand remains strong despite price drop: Indicators suggest potential decline


On October 28th, the social metrics of the decentralized blockchain Cardano made it the currency of the day. Demand for ADA on the futures market remained robust even though its price had dropped by approximately 2% in the previous 24 hours.


The relative strength index and the stochastic indicator had reached their overbought thresholds, indicating that selling pressure on the token would rise, leading to a significant decline in its price in the coming days.


As of 28 October, Cardano’s social performance was unrivaled, with ADA’s social engagement exceeding 138 million and its social dominance reaching 10.7 percent. With a Galaxy score of 48 and an Altrank of 19, Cardano’s token metrics looked promising on LunarCrush as well. However, the value of ADA has fallen by about 1.5% in the last day.


As of this writing, Cardano has a market worth of about $10.8 billion, making it the seventh biggest cryptocurrency by value. It was trading at $0.2914. In addition, Cardano’s Weighted Sentiment and Social Volume metrics also declined, indicating that investors were becoming less bullish on the cryptocurrency.


At the time of publication, the Binance Funding Rate was green, indicating that demand for ADA on the futures market was robust.


Binance funding rate, source: Santiment
Binance funding rate, source: Santiment


According to the data provided by CryptoQuant, the Relative Strength Index (RSI) and stochastic for ADA were both overbought, suggesting that there may be a surge in selling pressure and a subsequent decline in its price.


ADA RSI, source: Tradingview
ADA RSI, source: Tradingview


The Chaikin Money Flow (CMF), although showing an increase, continued to favor the bulls.


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