The price of Cardano (ADA) has seen a significant rebound over the past few days, with a remarkable 33.7% rise, reaching an intraday high of $0.436 on November 8. The bullish momentum has propelled ADA to four-month highs, with the token currently trading at $0.4302. The rally comes amid renewed market optimism following the 2024 US Presidential Election results.
Trump Victory Fuels Crypto Market Surge
The recent election victory of Donald Trump is being viewed as a positive development for the cryptocurrency market. Trump’s promise to create a crypto-friendly business environment has boosted investor sentiment, with ADA surging 17% over the past 24 hours and 28% over the past week. The broader crypto market has also benefited, with Bitcoin (BTC) hitting a new all-time high of $76,943 and Ethereum (ETH) climbing above $2,900.
ADA/USD daily chart. Source: TradingView
Other major cryptocurrencies, such as Binance Coin (BNB), Solana (SOL), and XRP, have posted significant gains in the wake of Trump’s victory. The total crypto market cap has risen by 2% in the past 24 hours and 14% over the last four days, reaching $2.57 trillion.
Fed Rate Cut Adds Tailwinds to Crypto Market
Adding to the bullish momentum, the Federal Reserve announced a 0.25% interest rate cut on November 7, citing improvements in labor market conditions and increased confidence in hitting its 2% inflation target. The rate cut has bolstered liquidity in the market, encouraging risk-on sentiment among investors and driving up demand for higher-return assets like cryptocurrencies.
Cardano’s Funding Rates and Technical Breakout
Cardano’s recent rally was also supported by a spike in its open interest-weighted funding rate, which reached 0.0159% on November 7, the highest since June 2024. This surge in funding rates suggests a strong appetite for long positions as ADA’s price jumped 17% in just 24 hours. Short liquidations amounted to $1.67 million, further fuelling the upward momentum.
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From a technical standpoint, ADA has broken above its multimonth descending trendline resistance, a key level that had previously capped gains. The breakout suggests the potential for further upside, with the next target being the April 22 high of $0.52—a potential 19% increase from the current price.
Outlook: Can ADA Sustain Its Momentum?
With a mix of macroeconomic tailwinds and technical bullish signals, Cardano’s recent gains could pave the way for further upward movement. However, whether it can sustain this momentum remains to be seen as market participants keep a close watch on upcoming economic and political developments.
