As a seasoned crypto investor with a knack for spotting trends and reading market signals, I’ve seen my fair share of bull runs and bear markets. The recent surge in Cardano (ADA) price, following Donald Trump’s victory in the 2024 US Presidential Election, has caught my attention.
Over the past four days, the price of Cardano (ADA) experienced a notable recovery, surging by approximately 33.7% to reach an peak of $0.436 on November 8th. This upward trend seems to be fueled by a strengthening market in response to Donald Trump’s victory in the 2024 U.S. Presidential Election.
In the past 24 hours, the value of ADA has increased by 17%, surpassing other assets in the market, and over the last week, it’s climbed an impressive 28%.
Let’s look at the factors driving the ADA price up today.
ADA price rises alongside Bitcoin, Ethereum
In my analysis, the optimistic outlook towards cryptocurrencies wasn’t limited to just Cardano; instead, it was a widespread phenomenon as the prices of various cryptos surged. This bullish trend could be attributed to the victory of Donald Trump in the U.S. presidential election, which seemed to create a favorable environment for financial markets.
Bitcoin, the most significant digital currency in terms of market value, has been the frontrunner, surging by approximately 9.6% during the past week, reaching a record peak of $76,943 on November 7. It’s also worth noting that Bitcoin has increased by around 12.7% since November 5. As for Ether, it has experienced a growth of over 3% within the last day and is currently trading above $2,900.
Moreover, noteworthy digital currencies such as Binance Coin’s BNB, Solana, Ripple’s XRP, and Dogecoin have experienced substantial increases in value during the recent period.
In a similar vein, during the past 24 hours, the overall cryptocurrency market value has risen by 2%, while it has grown by 14% in the last four days, currently standing at approximately $2.57 trillion when this report was published.
Trump’s victory is perceived as positive for the cryptocurrency market because he has pledged to create a welcoming business climate for cryptocurrencies, which in turn increases risk-taking confidence.
Beyond just political influences, the Federal Reserve’s move to lower interest rates by 0.25% on November 7 has given a boost to the cryptocurrency market. This is because the Fed mentioned improved labor market conditions and growing faith that inflation will steadily approach its 2% goal.
In simpler terms, when rates are reduced, it often increases market activity and strengthens the value of assets, encouraging investors to look for greater profits, even in sectors like cryptocurrencies, as it fosters a more optimistic investment climate.
ADA sees a spike in funding rates
On November 7, a significant rise in the open interest-weighted funding rate for ADA was observed, which subsequently led to its bullish price action on November 8. The chart demonstrates that the 8-hour open interest-weighted funding rate for ADA reached 0.0159% on Nov. 7, the highest since June 2024.
This indicates a strong interest in holding long positions, given that ADA’s price increased approximately 17% within the past day.
On November 8, ADA’s surge was followed by a net sell-off worth approximately $1.67 million from short positions, while only around $247,484 was sold off from long positions. This trend persisted at the time this information was published.
In other words, short traders were caught off-guard by ADA’s rise to $0.438.
Cardano price more gains ahead
Today’s growth in Cardano is a continuation of a technical recovery that began on November 5. Importantly, this recent surge has allowed the layer-1 token to surpass its long-term resistance trendline, as depicted in the graph below.
ADA has experienced multiple unsuccessful efforts to surpass this resistance level. The latest significant attempt occurred from September 6 to September 27, resulting in more than 32% growth, but this ascent was halted by sellers at approximately $0.42.
Due to this technical arrangement, the likely upcoming goal for ADA bulls is the peak of $0.52 from the April 22 range, which represents an increase of approximately 19% compared to the current price level.
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2024-11-08 10:17