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Cardano (ADA) has seen a significant increase over the past four days, with its price rising by as much as 32%. In the last 24 hours alone, ADA is up 16%, pushing its market cap to $14.932 billion. This rise has pushed Cardano back to its position as the ninth largest cryptocurrency by market capitalization. Several factors contributed to this bullish momentum:
#1 Bulls are taking over the entire crypto market
The bullish market sentiment extends beyond Cardano, with the crypto market as a whole seeing a significant rally. This upward movement is mainly driven by Donald Trump’s victory in the American presidential elections. The Trump administration has committed to ending the “war on crypto” and positioning the United States as a central hub for crypto companies.
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Adding to the positive momentum, the Federal Reserve’s November 7 decision to cut interest rates by 0.25% has provided additional tailwinds for the crypto market. The Fed cited easing labor market conditions and increased confidence that inflation is moving sustainably toward the 2% target. Analysts at The Kobeissi Letter noted that the vote for the interest rate cut was unanimous. Powell said that “labor market conditions have generally eased” and that “risks to targets remain approximately balanced.”
#2 Cardano whale activity
On-chain analytics company Santiment has marked a surge of whale activity around Cardano. In a recent post on They suggested that “we may see FOMO in retail soon,” acknowledging that this wave “has been a long time coming for the patient ADA community.”
Santiment reported that Cardano rose above $0.43 for the first time since July, rising 25% in three days due to “massive network and whaling activity.” They specifically pointed out that 37,892 unique ADA addresses made transfers in a single day – the most since the September 4 bottom – and there have been 697 transactions over $100,000, also the highest since that date. This increase in the number of large transactions and active addresses indicates increased interest from major investors, signaling the potential for continued upside momentum.
#3 Technical breakthrough
Unlike many other altcoins, ADA is in a prolonged bearish phase. However, the recent rise could mark a crucial turning point, signaling a potential bullish reversal. Since August, Cardano’s price has hit a series of higher lows.
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The current move has also caused the ADA price to rise above the downtrend line that has dictated price movement since April, after being rejected five times previously. The breakout can be considered significantly bullish as it was in line with the pattern of higher lows.
Notably, ADA has surpassed the 20, 50, 100 and 200 day moving averages during this increase. Moreover, ADA has crossed the Fibonacci retracement level of 0.236, the most critical horizontal resistance point. A successful retest of this price level at $0.40 today could pave the way for further upside potential.
At the time of writing, ADA was trading at $0.4266.
Featured image from Shutterstock, chart from TradingView.com