Cardano (ADA) has experienced a significant surge over the past four days, with its price rising an astonishing 32%. In just the last 24 hours, ADA has increased by 16%, bringing its market capitalization to $14.932 billion. This surge has propelled Cardano back to the position of the ninth largest cryptocurrency by market cap. Several factors have contributed to this bullish momentum:
1 Bulls take over the entire cryptocurrency market
The optimistic market sentiment is not limited to Cardano; the entire cryptocurrency market has experienced a significant rebound. This upward trend is primarily attributed to Donald Trump's victory in the U.S. presidential election. The Trump administration has pledged to end the "war on cryptocurrency" and position the U.S. as a central hub for cryptocurrency business.
In addition to the positive momentum, the Federal Reserve's decision to cut rates by 0.25% on November 7 provided additional impetus for the crypto market. The Fed noted that labor market conditions have eased, and there is growing confidence that inflation is progressing toward the 2% target. Analysts from the Kobeissi Letter pointed out that the rate cut vote was unanimous. Powell stated, "Labor market conditions have generally eased," and, "Target risks remain roughly balanced."
2 Cardano whale activity
On-chain analytics company Santiment highlighted a surge in whale activity surrounding Cardano. In a recent post on X, they observed that ADA is "one of the striking surprise altcoins during this cryptocurrency surge." They stated, "We may soon see some retail FOMO coming in," acknowledging that this surge has been long awaited by the patient ADA community.
Santiment reports that due to "massive network and whale activity", Cardano has broken through $0.43 for the first time since July, rising 25% in three days. Specifically, they noted that there were 37,892 unique ADA addresses that transferred on a single day - the highest day since bottoming out on September 4 - with 697 transactions exceeding $100,000, also the highest level since that date. The rise of large transactions and active addresses indicates increased interest from major investors, signaling potential for continued gains.
3 Technical Breakthroughs
Unlike many other altcoins, ADA has been in a long-term bearish phase. However, the recent surge may mark a critical turning point, signaling a potential bullish reversal. Since August, Cardano's price has been making a series of higher lows.
The current trend has also allowed the ADA price to break through the downward trend line that has dominated its price movements since April, which had previously been rejected five times. This breakout can be seen as a significant bullish signal as it aligns with a pattern of higher lows.
Notably, during this rally, ADA has broken through the 20, 50, 100, and 200-day moving averages. Additionally, ADA has surpassed the 0.236 Fibonacci retracement level, which is the most critical level of resistance. Successfully retesting this price level of $0.40 today could pave the way for further gains.
As of the time of writing, ADA is trading at $0.4266.
