Cardano (ADA) has witnessed a remarkable upswing over the past four days, with its price surging by an impressive 32%. Within the last 24 hours alone, ADA has seen a 16% increase, elevating its market capitalization to a substantial $14.932 billion. This remarkable growth has reinstated Cardano as the ninth-largest cryptocurrency by market capitalization. Several key factors have contributed to this bullish momentum:
Bulls Take Over the Entire Crypto Market
The favorable market sentiment isn’t exclusive to Cardano; the entire cryptocurrency market is experiencing a significant rally. This upward trajectory has been notably influenced by Donald Trump’s victory in the US presidential election. The Trump administration has pledged to cease the “war on crypto” and transform the United States into a central hub for cryptocurrency businesses.
Adding to the positive momentum, the Federal Reserve’s decision on November 7 to lower interest rates by 0.25% has provided additional support for the crypto market. The Fed pointed to easing labor market conditions and increased confidence that inflation is sustainably moving toward the 2% target. Analysts from The Kobeissi Letter highlighted that the decision for the rate cut was unanimous. Powell stated that “labor market conditions have generally eased” and that “risks to goals remain roughly in balance.”
Cardano Whale Activity
On-chain analysis firm Santiment has identified a surge in whale activity surrounding Cardano. In a recent post on X, they noted that ADA has emerged as “one of the notable surprise altcoins taking flight during this crypto-wide pump.” They speculated that “we may be seeing some retail FOMO coming soon,” acknowledging that this surge “has been a long time coming for the patient ADA community.”
Santiment reported that Cardano surpassed the $0.43 mark for the first time since July, achieving a 25% increase in just three days due to “massive network and whale activity.” Specifically, they highlighted that 37,892 unique ADA addresses executed transfers in a single day—the highest since the September 4th bottom—and there were 697 transactions exceeding $100,000, also the highest since that date. This rise in large transactions and active addresses signifies heightened interest from major investors, indicating potential for continued upward momentum.
Technical Breakout
Unlike many other altcoins, ADA has been in a prolonged bearish phase. However, the recent surge could signify a pivotal turning point, suggesting a potential bullish reversal. Since August, Cardano’s price has been making a series of higher lows.
The current movement has also allowed the ADA price to break above a downtrend line that has dictated its price movement since April, after being rejected five times previously. The breakout is considered significantly bullish as it aligns with the pattern of higher lows.
Notably, ADA has surpassed the 20-, 50-, 100-, and 200-day moving averages during this surge. Additionally, ADA has moved past the 0.236 Fibonacci retracement level, a critical horizontal resistance point. Successfully retesting this price level at $0.40 today could pave the way for further upside.
At the time of writing, ADA is trading at $0.4266.
