As a seasoned analyst with over two decades of experience in financial markets, I must admit that the Cardano price rally is indeed impressive and noteworthy. The 83% surge in just six days is a testament to the growing interest and confidence in the project, particularly with the potential impact of the 2024 U.S. election and Donald Trump’s presidency.
In November, many well-known alternative cryptocurrencies displayed a resurgence in their recovery trend, fueled by the excitement surrounding the U.S. election and Donald Trump’s victory. The original digital currency, Bitcoin, continued its price exploration, reinforcing the optimistic outlook in the overall market. Among the leading cryptos, Cardano saw an impressive 83% increase in value over a weekly period, indicating that there is still potential for further growth ahead.
As of when the news was published, the price of ADA had been exchanged at approximately $0.58, marking a significant increase of around 28.5% within the day. Based on data from Coingecko, this surge elevated the asset’s market capitalization to a staggering $20.58 billion. Furthermore, the 24-hour trading volume was reported at a substantial $2.53 billion.
Why Cardano Price Rally Isn’t Overbought Despite Massive Gains
Over the past six days, the cryptocurrency Cardano on the layer-1 platform has experienced a significant upward surge from $0.326 to $0.58, marking an impressive 83% price rise. Examining the daily chart reveals this rally, as evidenced by the growing size of green candles and increased trading volume, suggesting a persistent uptrend.
The robust progress could be linked to multiple aspects, starting with the possible consequences of the 2024 U.S. election, especially if Donald Trump were to become the 47th president. Furthermore, Cardano’s new alliance with BitcoinOS opens up access to a whopping $1.3 trillion in Bitcoin liquidity, greatly boosting its decentralized finance (DeFi) infrastructure.
According to the TradingView chart, the ADA price breaks through a significant downward sloping resistance line within a triangle formation. This breakout suggests that buyers have found a way out of a six-month period of consolidation, providing a solid foundation for further price increases.
It’s plausible that the rise in today’s Cardano price stems from the news of its founder, Charles Hoskinson, intending to collaborate with the US government during the Trump administration on crypto legislations.
Previously mentioned factors significantly increase the acceptance and desire for Cardano’s native cryptocurrency, setting it up for potential future growth.
Large Holders Bet Big on ADA as Market Bottom Signals Emerge
Based on Santiment’s data, a ‘Cardano whale’ who owns around 100 Million to 1 Billion coins has noticeably increased their accumulation from 2.06 to 2.93 since mid-April. Despite the ongoing market downtrend, this increase in buying by large holders suggests they are optimistic about Cardano’s future growth.
Generally, this signal coincides with major market bottoms and reverses trends.
Instead, it’s important to note that the current increase in Cardano’s price is driven by the factors mentioned sequentially. Consequently, a similar intensity of this rally might not persist unless additional external influences come into play.
In addition, when prices surge significantly, there’s usually a brief period of correction where buyers gather their strength. If this is the case with ADA, its price might drop to find support at crucial Daily Exponential Moving Averages (EMAs) such as the 20, 50, 100, and 200 EMAs.
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2024-11-10 16:32