Cardano (ADA) Is the Cryptocurrency of the Day, How Did It Happen?

Cardano (ADA) has been named the cryptocurrency of the day for October 28, according to a post shared by X (formerly Twitter) CryptoDep. The token of the day is a list coined by the crypto social intelligence platform LunarCrush.

To be top of the list, a project needs to have a significant surge in terms of the altrank and the galaxy score. Using the galaxy score and altrank, LunarCrush gives an idea of the interactions within a project’s community.

⚡ Coin of the day by social activity – @Cardano $ADA
28 October 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

So, for ADA, being the cryptocurrency of the day means that there was a notable increase with respect to market activity around the token. When it comes to the price action, ADA changed hands at $0.29. This value was a 0.82% decrease in the last 24 hours. But in the last seven days, ADA has had an impressive performance.

ADA Shows Potential for a Breakout

Another reason ADA could have hit the milestone could be linked to the series of events that occurred during the week. For instance, ADA was one of the tokens that previously had an abysmal performance out of the top 10.

However, the ADA/USD daily chart showed that support suddenly appeared at $0.24. This was because of the glaring seller exhaustion the token has had. Bulls took advantage of the support to increase buying pressure, as ADA flipped $0.27.

But at $0.281, the token faced rejection. However, sellers were not able to resist the bullish bias for long as ADA climbed to $0.29. As a result of the buying pressure, the Relative Strength Index (RSI) jumped to 75.86.

This RSI reading is considered overbought. Hence, it is likely for ADA to retrace, and the targets to watch are between $0.26 and $0.28. Meanwhile, the On Balance Volume (OBV) showed that the reversal may only last a little while. At the time of writing, the OBV was increasing.

ADA/USD Daily Chart (Source: TradingView)

The increase in the indicator, as shown above, is a sign of buyers’ presence in the market. Should the OBV maintain its position and the ADA price decrease, then a jump to $0.30 may be next for the cryptocurrency.

Another reason the Cardano network has been able to get the attention of the market is the increase in its Total Value Locked (TVL). At press time, Cardano’s TVL was $198.43 million. This value was a 22.30% hike in the last seven days.

Cardano TVL (Source: DeFi Llama)

The TVL is a measure of the total assets staked or locked in a protocol. When the TVL increases, it means there are more market players who trust the protocol. A decrease implies otherwise. Hence, for Cardano, the TVL means that there has been a surge in liquidity assigned to the toke protocol.

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