Why is Cardano (ADA) price up today?
The ADA price breaks a multimonth slump, propelling Cardano to four-month highs thanks to various macro tailwinds and favourable technicals. Cardano ADA $0.4304 price has staged a significant rebound in the last four days, jumping by more than 33.7% to an intraday $0.436 on Nov. 8 as the market rallied following Donald Trump’s victory in the United States 2024 Presidential Election.
The ADA price has risen 17% in the previous 24 hours, surpassing the market, and 28% in the last seven days.
ADA price rises alongside Bitcoin, Ethereum
The positive feeling was not limited to Cardano, as cryptocurrency prices soared across the board following Donald Trump’s victory in the US presidential campaign.
Bitcoin BTC tickers down $75,813, the largest cryptocurrency by market capitalisation, led the gains, rising 9.6% over the last week to a new all-time high of $76,943 on Nov. 7, with a 12.7% increase since Nov. 5. Ether (ETH) is down $2,897.31 but has rallied more than 3% in the previous 24 hours to trade above $2,900.Other top-cap cryptocurrencies, including as BNB Chain’s BNB $596.64, Solana SOL $197.76, XRP XRP $0.5478, and Dogecoin DOGE $0.1991, have seen considerable rises in recent days.
Similarly, the overall cryptocurrency market capitalisation has climbed by 2% in the last 24 hours and 14% in the last four days, reaching $2.57 trillion at the time of publication.
Trump’s victory is regarded positively for the cryptocurrency market, as he promised to build a crypto-friendly corporate environment, bolstering risk-on mentality.
In addition to political concerns, the Federal Reserve’s move to drop interest rates by 0.25% on November 7 has added tailwinds to the cryptocurrency market, citing easing labour market conditions and growing confidence that inflation is steadily approaching the 2% target. Lower interest rates often increase market liquidity and asset prices, fostering a risk-on climate in which investors seek larger rewards, including cryptocurrency.
ADA sees a spike in funding rates
The bullish price movement of ADA on November 8 was preceded by an increase in the open interest-weighted funding rate. The graphic below shows that the ADA’s 8-hour OI-weighted funding rate jumped to 0.0159% on November 7, the highest level since June 2024.
This implies a strong appetite for long positions, as ADA’s price increased by around 17% in the last 24 hours. The ADA’s surge on November 8 was accompanied by short liquidations of $1.67 million, compared to $247,484 in long liquidations, which were still ongoing at the time of writing.In other words, short sellers were caught off guard by ADA’s climb to $0.438.
Cardano price more gains ahead
Cardano’s gains today are part of a technical bounce that began on November 5th. Notably, during the most recent surge, the layer-1 token broke above its multimonth falling trendline resistance, as illustrated below.
ADA has had several failed attempts to break above this resistance, the most recent being its 32%-plus advances between September 6 and September 27, which were limited by sellers at $0.42. As a result of this technical setup, the next obvious goal for ADA bulls will be the April 22 range high of $0.52, which represents a 19% increase from current levels.
Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.