Elections, Fed Rate Cut Boosts ADA Price, But What’s Next?

• Cardano swept up liquidity as ADA price kept on its upward trajectory.
• Large holders in ADA have significantly increased their accumulation since mid-April.
• RSI suggests that the ADA price may need to cool off to the 50-60 RSI range, allowing buyers to regain strength before any further upward movement.

In November, many major altcoins experienced a resurgence, fueled by the excitement surrounding the U.S. elections, Donald Trump’s victory, and a quarter point cut by the fed.

Bitcoin’s entry into a price discovery phase has further reinforced the bullish sentiment in the broader cryptocurrency market.

Among the top gainers, Cardano (ADA price) has surged dramatically, experiencing six consecutive days of increases and effectively almost doubling in value.

Over the past 100 days, ADA price has seen nearly a 150% rise, moving from a support level to a resistance block, with this week’s momentum accounting for a significant portion of those gains.

Continue to read on for more insights into ADA’s price movements.

Cardano’s 6 Consecutive Days Surge Was Bold, But RSI Speaks Caution

On November 10th, Cardano’s price surged nearly 40%, marking one of the sharpest daily increases this year, according to CoinMarketCap.

This rally followed a period of consolidation within a narrowing pattern. The price broke through all major EMAs, including the 20-day, 50-day, and 200-day.

However, as of now, the price has paused in its ascent. At the time of writing, ADA price is trading at $0.5837, down 15% from its recent high this week. Despite this decline, it retains about 80% of its gains.

Cardano’s market cap increased to $22.57 Billion but has since fallen to $20.45 Billion. The 24-hour trading volume rose significantly, reaching $4.85 Billion, up 106%.

The MACD indicator confirms bullish momentum, crossing above the signal line, indicating potential upward movement.

Similarly, the Awesome Oscillator also showed strong momentum, with bars peaking at 0.1228. The Chaikin Money Flow indicates robust money inflows, currently CMF at 0.22.

This week’s surge also successfully, broke through key resistance levels at $0.34 and $0.40, peaking near $0.81. If ADA continues this upward trend, it may attract more buyers.

However, caution is advised as the bullish momentum appears to be slowing. The Relative Strength Index is at 83.65, indicating overbought conditions.

ADA price may need to cool off to the 50-60 RSI range. If it cannot maintain support strongly above $0.40-$0.50, the rally may stall and lead to a retracement.

Cardano Sweeps Liquidity & Rises

Cardano’s liquidation heatmap showed a significant accumulation of liquidity as ADA price maintained its upward momentum.

As the ADA price increased, open interest also rose, reflecting greater trading activity and market involvement.

This sharp price rise resulted in numerous liquidations, particularly evident in the densely colored bands around the $0.40 to $0.45 range, indicating a spike in liquidated positions.

These liquidations likely contributed to ADA’s rapid price ascent, as the closing of short positions created upward pressure.

Such activity can trigger a cascade effect, where Cardano’s liquidation of shorts further propels the price higher.

If Cardano’s price sustains this momentum and remains above these critical liquidity zones, it could continue to climb. Furthermore, it could reach higher resistance levels.

$ADA is sweeping up liquidity and continuing its upward momentum pic.twitter.com/XrPrYi3R9D

— Hyblock (@hyblockcapital) November 9, 2024

Conversely, if the ADA price dips back into these heavily liquidated areas, it may face significant selling pressure, which could halt the current rally.

Thus, monitoring the Cardano’s liquidation levels is essential for anticipating ADA’s future movements.

Large Holders Are Highly Interested in ADA Price

Data from Santiment reveals that ADA whales holding between 100 million and 1 billion coins have significantly increased their accumulation, rising from 2.06 to 2.93 since mid-April.

This trend suggests that large holders have confidence in Cardano’s future growth, despite the overall market downtrend.

Typically, such accumulation patterns align with major market bottoms and trend reversals.

However, the recent rise in Cardano’s price has been driven by a series of factors occurring one after another. As a result, sustaining this momentum may be challenging without additional external catalysts.

Furthermore, a sharp ADA price increase is usually followed by a brief corrective phase. That allows buyers to regain strength before any further upward movement.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.