Cardano (ADA) has leaped 32 per cent over the past four days, including a 16 pro cent rise in just 24 hours. With the recent gains, ADA’s market cap has shot up to $14.932 billion and has secured itself in the top 10-largest cryptocurrency.
There are several reasons for this rally. At the same time, the broader cryptocurrency market has also been swimming as the result of Donald Trump’s recent election victory. They promised to encourage the crypto industry and make the U.S. a world leader in crypto.
Cardano Gains As Fed Cuts Rates, Whale Activity Increases
Also on Friday, the Federal Reserve cut interest rates by 0.25 percent, voted unanimously, to bolster growth while inflation appears to be leveling off toward the Fed’s 2 percent goal. Whale activity has further boosted ADA’s momentum. On-chain analytics firm Santiment suggests Cardano has been one of the standout altcoins this rally with a break past the $0.43 mark for the first time since July.
However, the Santiment highlighted 37,892 unique ADA addresses which had activity in a single day, the most since early September, while also documenting 697 transactions of greater than $100,000, a sign of heightened interest from major investors.
The price movement exhibited here could be a turning point for ADA, which has seen little movement in its bearish phase so far. Cardano, a functional cryptocurrency since August, has higher lows than any other time since then, which points towards a bullish reversal. ADA also broke through a downtrend line since April and five rejection come along during the recent surge.
Technical parameters such as the 20-, 50-, 100- and 200 day moving averages, and the 0.236 Fibonacci retracement level have now been breached by ADA’s price. If this level is retested successfully in the $0.40 range once more, this would strengthen the faith that ADA investors have in an otherwise bullish stock.
