ADA has had an impressive rally since the beginning of the crypto-market wide resurgence. And its high price is continuing at the moment.
For instance, it gained by 24.8% within the last week. Within the previous two months its price increased by 90.8%.
Overall, its value rose by 84% during the past 3 months. At the time of writing ADA is traded at $0.78 ADA/USDT on Gate.io. The following graph shows ADA’s price movement during the past 7 days.
As observed on the graph, ADA performed outstandingly during the last three weeks. However, its trend seems to have weakened since there is a doji at the height of the current chart.Therefore, the market should keep watching to find if the uptrend will persist.
Notably, before its recent price surge ADA had a sluggish performance. In fact, it had been one of the worst performers during the first 10 months of the year. As a result, between January and October, the cryptocurrency lost around 40% of its value in 2024. During November, though, it recovered its six-month losses within one week.
Like many other leading cryptocurrencies, ADA’s performance is linked to the change in the crypto market sentiment due to Trump’s presidential election victory. However, there seems to be much more behind this rally.
ADA Rallies on Hoskinson-Trump Collaboration Rumors
As highlighted before, on 10 November the ADA price surged by over 40% to surpass its April high of $0.597. Its intraday rally was mainly caused by the rumors that Charles Hoskinson, Cardano founder, may become one of Trump’s advisors on issues related to cryptocurrencies. However, in his YouTube livestream Hoskinson said that they would set up an office to engage with the Trump administration in 2025. He did not mention that he had received an invitation to be one of Trump’s advisors.
Also, the Cardano founder explained that in the past he had spent much time with the US policymakers in a bid to create digital assets regulations that will promote innovation in the sector. He explained, “The crypto policy should be written by the American people, by the American crypto industry, and by well-meaning lawmakers who are willing to take the time to listen.”
Hoskinson aims to create a policy team that will work on various elements that may become useful inputs in the U.S policy framework. His policy office will liaise with legislators and politicians to moderate crypto laws. Apart from this, Hoskinson said that the crypto sector requires regulatory clarity that will affect all cryptocurrencies including XRP, Bitcoin and Ether.
It is essential to note that as of 10 November Trump had not mentioned the need to create a cryptocurrency policy group. Therefore, despite the absence of an official announcement about a possible work group that will advise the Trump administration on crypto related issues, the rumor was good enough to pump up ADA.
Cardano Technical Analysis
Historically, ADA had been in a descending channel which was broken in the past three weeks. At this point, the market waits to see if the coin will maintain its price above that channel. Already, the ADA price has risen above the 0.718 Fibonacci retracement level. Therefore, if it fails to sustain the upward pressure its value may fall towards the 0.6-0.582 Fib level. On the other hand, if there is a rise in the buying activity its price may rise towards the 0.786 Fibo line located around $0.75. Importantly, a breakout above that point may predict the price to reach $1.139 ADA/USDT. Nevertheless, it may reach that price level during the first quarter of 2025.
Several technical indicators support ADA’s bullish thesis. For example, the asset has a current Fear and Greed reading of 69%. This indicates that it may be the best time to buy the cryptocurrency. The current ADA price prediction depicts that it may reach a value of around $0.77 by the end of the month. Also, almost all its moving averages including the 50-day EMA, 100-EMA and 200-day EMA confirm its bullish trend. However, its Relative Strength Index has a reading of 77 which indicates an overbought market state. The Average Directional Index, with a reading of 16.71, is showing low volatility.
Is Cardano a Good Investment?
Considering its current impressive performance many people want to know if ADA is a good investment asset?
Cardano’s technology and fundamentals show that it may be a good investment asset. The blockchain is known for being a safe and cost-effective network. Also, there is a high possibility that its price may increase substantially. For example, in 2021 its price soared to $3.09 which is its current ATH. Thus, if it replicates a similar momentum the people who invest in it now may have triple returns. Apart from merely trading ADA investors may benefit from staking the coin.
Cardano has a very promising roadmap which may create more value for the investors. For instance, several upgrades that include Byron, Shelley, Goguen, Basho, and Voltaire will take place in the future. Finally, Cardano has the chance to forge many partnerships which may help to push the ADA value up.
