The price of ADA has soared amid rumors that the founder of Cardano will support US President-elect Donald Trump.
ADA fell by more than 40% through October 2024, making it one of the worst performing cryptocurrencies. However, a reversal occurred in November, with a slight increase.
In just one week, the cryptocurrency has recovered nearly six months of losses. Now, ADA is targeting a price increase of over 100% by March 2025.
On the 10th, the price of CalDan rose by more than 20%, reaching an April high of $0.597.
The rise is part of a broader crypto market rally following the reelection of crypto-friendly Trump, but the intraday gains were mainly driven by the recent announcement by Karuda founder Charles Hoskinson.
The post likely stems from rumors that former White House aide, Bruce Hoskinson, may join the Trump administration in 2025.
However, the report said that this was likely not true.
In a recent YouTube livestream, Lee revealed plans to open an office to communicate with government officials, but he has also said he plans to be a key player in the cryptocurrency policy of the incoming Trump administration.
There was no mention of a formal invitation to join the policy group. Trump has not officially announced the composition of a dedicated cryptocurrency policy group, so the intraday surge in ADA may be due to Hoskinson’s comments.
The risk is likely due to excessive speculation about cooperation between Donald Trump and Trump. However, despite the risks, the price of ADA could rise by as much as two times.
As a result, ADA’s daily relative strength index (RSI) hit its most overbought level since December 2023, suggesting some profit-taking may occur in the coming days.
As of November 10, ADA is currently testing the 0.618 Fib retracement level at approximately $0.599, which could act as resistance and could potentially threaten the price at the end of November.
A drop to the $0.548-$0.489 range, which is the $0.5-0.382 Fib levels, could occur before the bulls reach the $0.548-$0.489 range by the end of this month. A correction to this range could trigger a multi-year downtrend following the recent breakout.
It also serves as a retest of the trendline, and if this support holds, ADA could gain a foothold for further upside.
A test of the .786 Fib level at $0.786 (around $0.65) is possible as resistance.
If this level is broken, it will reach the 0.618 Fibonacci level of approximately 1.
A rally to $139 is more likely, implying a 105% gain by early 2025. Conversely, if the massive downtrend line resistance fails to hold, this could be a false breakout.
This is a pullback signal and could lead to a deeper correction to the uptrend line support at around $0.350.
2024/11/11 16:00 KST
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