According to a post from X CryptoDep (formerly Twitter CryptoDep), Cardano (ADA) has claimed the title of “Cryptocurrency of the Day” for October 28. This designation is part of a list compiled by the crypto social intelligence platform LunarCrush.
To earn a top spot on this list, a cryptocurrency project must experience a notable upswing in both its altrank and galaxy score. These metrics, as evaluated by LunarCrush, provide insights into the levels of community engagement and interactions within a project.
For ADA, being recognized as the cryptocurrency of the day signifies a significant uptick in market activity surrounding the token. Regarding its price movement, ADA was traded at $0.29, marking a modest 0.82% decrease within the past 24 hours. However, over the course of the last week, ADA has displayed an impressive performance.
ADA Indicates the Potential for an Upcoming Breakout
ADA’s recent achievement of this milestone can be attributed to a series of events that transpired during the week. Notably, ADA had been one of the underperforming tokens among the top 10.
However, a significant shift occurred as observed on the ADA/USD daily chart when it found support at $0.24. This sudden support emerged due to apparent exhaustion among sellers. Capitalizing on this support, the bulls increased their buying pressure, causing ADA to surpass the $0.27 mark.
Yet, at $0.281, ADA encountered resistance. However, sellers were unable to counter the prevailing bullish sentiment for long, leading to ADA’s climb to $0.29. This surge in buying pressure pushed the Relative Strength Index (RSI) to a high of 75.86.
An RSI reading of this magnitude is typically considered overbought. Consequently, there is a likelihood that ADA may experience a retracement, with potential target levels between $0.26 and $0.28. Meanwhile, the On Balance Volume (OBV) hinted that this reversal might be of short duration, as it was on the rise at the time of writing.
The uptick in the indicator, as depicted above, signifies the active participation of buyers in the market. If the OBV holds its current position and ADA’s price experiences a decline, the next logical step for the cryptocurrency could be a surge to $0.30.
Another factor that has garnered the market’s interest in the Cardano network is the notable increase in its Total Value Locked (TVL). As of the latest data, Cardano’s TVL stands at $198.43 million, marking an impressive 22.30% rise over the past seven days.
Total Value Locked (TVL) serves as an indicator of the collective assets staked or secured within a protocol. An upswing in TVL signifies an expanding trust in the protocol as more market participants engage, while a decline indicates the opposite. In the case of Cardano, the increased TVL reflects a notable surge in liquidity committed to the token’s protocol.