Cardano (ADA) Price Surges 32% In 4 Days: Here’s Why

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As a seasoned researcher with years of experience navigating the dynamic world of cryptocurrencies, I must say that the recent surge in Cardano (ADA) has caught my attention. With its impressive 32% increase over the past four days and a 16% climb in just 24 hours, it’s hard not to be intrigued.

Over the past four days, the price of Cardano (ADA) has soared by an impressive 32%, and in just the last 24 hours, it’s jumped another 16%. This recent surge has elevated its market capitalization to a staggering $14.932 billion, placing Cardano once more among the top ten largest cryptocurrencies by market cap. Multiple factors have fueled this bullish trend.

#1 Bulls Takes Over The Entire Crypto Market

The optimistic market sentiment extends beyond Cardano, with the crypto market as a whole experiencing a significant rally. This upward movement has been mostly driven by Donald Trump’s victory in the US presidential election. Trump’s administration has committed to ending the “war on crypto” and positioning the United States as a central hub for crypto businesses.

Boosting the ongoing optimism, the Federal Reserve’s decision on November 7 to lower interest rates by 0.25% has given an extra push to the crypto market. The Fed stated that they saw improvements in labor market conditions and were more confident that inflation was heading towards their 2% goal. Analysts from The Kobeissi Letter pointed out that all members of the Federal Reserve voted for this rate reduction. According to Chairman Powell, “the labor market conditions have become less tight” and “risks to our objectives remain approximately even.

#2 Cardano Whale Activity

Analysis firm Santiment has pointed out an increase in whale activity relating to Cardano. In a recent post on their platform, they noted that Cardano’s currency, ADA, has been one of the unexpected altcoins experiencing significant growth during this widespread cryptocurrency surge. They hinted at potential retail excitement (Fear Of Missing Out, or FOMO) approaching, recognizing that this rise “has been a long-awaited development for the patient Cardano community.

According to Santiment, Cardano surpassed $0.43 for the first time since July, escalating by 25% over a three-day span. This surge was attributed to substantial network and whale activity. Notably, they highlighted that there were 37,892 unique ADA wallets involved in transactions on a single day – the most since September 4th’s low point – and 697 transactions worth over $100,000, also the highest since then. This increase in significant transactions and active addresses suggests growing interest from prominent investors, suggesting the possibility of further upward trajectory.


#3 Technical Breakout

Unlike most other alternative cryptocurrencies, ADA has been experiencing an extended downtrend. Yet, its recent upward spike might signal a significant shift, hinting at a possible bullish recovery. Since August, the value of Cardano has been creating a sequence of rising bottoms.

Recently, this latest shift in direction has enabled the ADA price to surpass a resistance line that had controlled its price fluctuations since April, following five prior rejections. This breakthrough is seen as strongly optimistic since it coincides with the trend of successive lower highs.

Significantly, Cardano (ADA) has gone beyond its 20-, 50-, 100-, and 200-day moving averages in this upward trend. Furthermore, ADA has breached the significant horizontal resistance point at the 0.236 Fibonacci retracement level. If it successfully revisits this price of $0.40 today, it could potentially open the door for further gains.

At press time, ADA traded at $0.4266.

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2024-11-08 15:40