Cardano (ADA) Price Gains 75% in a Week — Rumors of Trump Collaboration Spark Rally
Cardano Price Increases After Trump Collaboration Rumors | Credit: Hameem Sarwar
Key Takeaways
- Cardano’s Charles Hoskinson hinted at a Trump collaboration
- The Cardano (ADA) price increased by 75 last week.
- How long until ADA can reach a new yearly high price?
The Cardano price has struggled in 2024. After reaching its yearly high in March, the price began to decline and fell to a low of $0.27 in August. However, it began an upward movement afterward, greatly accelerating in November.
Positive Cardano news regarding a collaboration with U.S. President-elect Donald Trump made the rally parabolic on Nov. 10. The ADA price now trades at its yearly open.
Let’s analyze the ADA price action in different time frames and see if the upward movement will continue.
Cardano Trump Collaboration
Cardano Founder Charles Hoskinson state d on Nov. 10 he will likely collaborate with the Trump administration regarding crypt. He said:
It’s clear I’m going to be involved influencing policy in USA, legislative options, potential executive. I’ve met with Senator Scott and Wyden and continue to be in contact with the administration, Senate, and Congress
However, not everyone is convinced. Market analyst Sean Mackey believes this is just an exit pump engineered by Hoskinson. He suggests the wording was tactical enough to allow for a market reaction without making any promises.
Nevertheless, the Cardano price increased by 75% last week, outpacing other Layer-1s.
ADA Price Breaks Out
The weekly time frame ADA chart shows that last week’s price increase triggered a breakout from a horizontal and diagonal resistance area. Cardano cleared a descending resistance trend line and the $0.47 horizontal resistance area.
On Nov. 10, ADA reached a high of $0.66, the highest price in 217 days. Despite the increase, ADA did not close above the $0.58 horizontal resistance area. This is a critical level since it has acted as resistance since May 2022, except for a deviation in March (black circle).
While the yearly high of $0.81 could provide minor resistance, the next pivotal resistance is at $1.20, 112% above the current price.
Technical indicators are bullish. Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences (green) before the upward movement.
They are above 50 and 0, respectively, suggesting that the future ADA trend is bullish.
What’s Next?
The daily time frame ADA wave count shows the price starting wave three in a five-wave increase (black) in August. If so, it is currently in sub-wave three (yellow), often the most rapid portion of the increase.
For the long-term movement, the entire increase could either be part of wave C (white) or another five-wave increase.
In any case, the ADA price is likely to increase to at least $0.88, giving waves A and C the same length. This would be a new yearly high.
On the other hand, if the increase is part of another five-wave upward movement, Cardano will likely reach the next long-term horizontal resistance at $1.20.
The ADA trend remains bullish if the price does not fall below the sub-wave one high at $0.40.
Yearly High to Come
The Cardano price increased significantly after rumors of a collaboration with Trump.
The ADA price outlook is bullish in multiple time frames, and an upward movement leading to a new yearly high is likely. The next target for an increase will be at $1.20.
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