Cardano Rockets on News of Trump Collaboration
11 Nov, 2024 ● Coin news
Cardano faced challenges in 2024 as one of the year’s worst-performing cryptocurrencies, losing over 40% of its value year-to-date by the end of October.
However, November brought a rapid recovery, with ADA erasing nearly six months' worth of losses within a week and now aiming for potential 100% gains by March 2025.
On Nov. 10, Cardano’s price surged by more than 20%, reaching its April peak of $0.597.
The cryptocurrency's rise is mainly part of a larger rally across the crypto market following Donald Trump's reelection on Nov. 6, as he is seen as a pro-crypto president.
ADA's intraday spike, however, was largely fueled by speculation that Cardano founder Charles Hoskinson might join the Trump administration in 2025.
Despite the rumors, Hoskinson clarified in his latest YouTube livestream that while they plan to set up an office to engage with government officials, he has not received any formal invitation to join a crypto policy department under the new administration.
As of Nov. 10, Trump has not announced the creation of a specific cryptocurrency policy group, suggesting that ADA’s price surge was primarily driven by speculative excitement surrounding a potential collaboration with Hoskinson.
The price increase has pushed ADA’s daily relative strength index (RSI) to its highest overbought level since December 2023, indicating that the market is overheated and may be due for profit-taking soon.
Currently, ADA is testing resistance at the 0.618 Fibonacci retracement level around $0.599.
If a pullback occurs, there is a chance ADA could fall toward the 0.5-0.382 Fib level range, between $0.548 and $0.489, by the end of November.
This potential decline would also mark a retest of the multi-year descending trendline that was recently broken, as seen in the weekly chart.
Holding support at this level could confirm the breakout and establish a foundation for more upward movement.
If ADA successfully bounces from this support, it may target the 0.786 Fibonacci line near $0.65 as resistance by December.
Breaking through this resistance could propel Cardano's price to the 0.618 Fibonacci line around $1.139 in early 2025, representing a 105% rally.
On the other hand, if ADA fails to maintain support above the descending trendline, it could indicate a false breakout, potentially leading to a more significant decline toward the ascending trendline support around $0.350.
Sources:
https://cointelegraph.com/news/ada-price-pumps-30-rumors-cardano-founder-trump
