Date: Mon, Nov 25, 2024, 05:38 PM GMTThe cryptocurrency market has entered a strong bullish phase this month, driven largely by Bitcoin’s (BTC) meteoric rise to an all-time high of over $99,000 following Donald Trump's victory in the U.S. presidential election. Altcoins have followed suit, with Cardano ($ADA) gaining significant momentum, surging by over 200% in the past 30 days.
With this rally, $ADA has successfully reclaimed the crucial $1 level, a significant psychological milestone for the token. The token recently hit a high of $1.15 before correcting to its current price of $1.0.
Source: Coinmarketcap
One of the key drivers of ADA's rally has been the renewed spotlight on its founder, Charles Hoskinson, who confirmed plans to collaborate with the Trump administration to shape favorable cryptocurrency regulations. This political alignment has brought a surge in investor interest and optimism toward Cardano’s long-term growth.
Network Growth
Cardano’s blockchain activity has witnessed an impressive surge, signaling robust adoption and network usage. According to Artemis, daily active addresses on the Cardano chain have soared from 29.8K at the beginning of the month to 69.3K, marking the highest levels since June 2023. This uptick highlights increased user engagement and on-chain activity, which is often a strong indicator of network health and growth.
Source: Artemis
Additionally, Cardano’s Total Value Locked (TVL) has seen significant growth, rising from $198 million to $580.2 million within a month. This rapid expansion in TVL indicates heightened participation in decentralized applications (dApps) within the Cardano ecosystem, including DeFi platforms and staking pools. The surge in TVL suggests that more users are trusting the network’s smart contract capabilities, which may serve as a foundation for sustained growth in its ecosystem.
Is More Rally Ahead?
After hitting $1.15, ADA is currently undergoing a healthy correction phase. It is trading at $1.0, holding above the key support zone at $0.9770. This level serves as a pivotal point, and if ADA successfully reverses from here, it could trigger another leg up.
Source: Coinmarketcap
The immediate target for ADA lies at $1.24, a resistance level derived from historical price actions. Breaking this level could push the price higher, potentially to $1.50, driven by strong technical momentum. Supporting this outlook is the bullish MACD crossover, which suggest buyers remain firmly in control despite the recent correction.
Furthermore, external factor like declining of Bitcoin’s dominance may fuel another rally. If the market retains its bullish sentiment and ADA can attract more institutional and retail interest, the potential for ADA to reclaim even higher price levels, such as $1.50 or $1.75, cannot be ruled out.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.
