Cardano (ADA) price has seen a solid rebound, rising more than 33.7% over the past four days, reaching $0.436 intraday, as the market strengthens following Donald Trump’s victory in the 2024 US presidential election.
ADA price is up 17% in the last 24 hours, outperforming the rest of the market, and is up 28% in the last 7 days.
ADA/USD daily chart. source: TradingView
Let’s take a look at what’s driving up ADA prices today.
ADA price rises along with Bitcoin and Ethereum.
The optimism is not limited to Cardano, with cryptocurrency prices rising across the board thanks to Donald Trump’s victory in the US presidential election.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, led the upward trend, surging 9.6% last week and hitting an all-time high of $76,943 on November 7, including a 12.7% rise since November 5. ETH) is trading above $2,900, up more than 3% in the last 24 hours.
Top-notch cryptocurrency performance around the clock. Source: Coin360
Other top cryptocurrencies, including BNB on the BNB chain, Solana (SOL), XRP (XRP), and Dogecoin (DOGE), have also recorded significant gains over the past few days.
Likewise, the overall cryptocurrency market capitalization has increased by 2% in the last 24 hours and 14% in the past four days, remaining at $2.57 trillion at the time of publication.
source: Associated Press
Trump’s victory is seen as bullish for the cryptocurrency market following his promise to create a cryptocurrency-friendly business environment and increase sentiment about risk.
Aside from political factors, the Federal Reserve’s decision to cut interest rates by 0.25% on November 7 added a tailwind to the cryptocurrency market as it boosts confidence that the Fed is easing labor market conditions and inflation is continuing to move toward its 2% target. I did it. .
source: Kobeish Letter
Low interest rates generally increase market liquidity and support asset appreciation, creating a risk environment in which investors seek higher returns, including cryptocurrencies.
The ADA has seen a surge in funding rates.
Ahead of ADA’s bullish price action on November 8, the outstanding interest-weighted funding ratio surged. The chart below shows ADA’s 8-hour OI-weighted funding rate increasing to 0.0159% on November 7, the highest since June 2024.
This means that there is a strong preference for long positions, as the price of ADA has risen by about 17% in the last 24 hours.
ADA OI Weighted Funding Rate. Source: Coinglass
ADA’s rally on November 8 was accompanied by short-term liquidations totaling $1.67 million compared to long-term liquidations of $247,484, a tally that remained at the time of publication.
ADA liquidation. Source: Coinglass
That said, short-term traders were caught off guard as ADA rose to $0.438.
Cardano price will gain more in the future
Cardano’s rise today is part of a technical rebound that began on November 5th. In particular, the recent rally saw layer 1 tokens break through multi-month falling trendline resistance, as shown below.
ADA has seen various failed attempts to break above this resistance level, most recently with gains of over 32% between September 6 and September 27, which were capped by sellers at $0.42.
ADA/USD weekly price chart. Source: TradingView
As a result of this technical setup, the next logical target for ADA bulls would be the April 22 high of $0.52, up 19% from current prices.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.