Cardano price has soared in the past three consecutive weeks, pushing it to its highest level since March this year. ADA token was trading at $0.7940 on Tuesday morning, up by 170% from its lowest level this year.
Cardano price sits at a make-or-break point
The weekly chart shows that the ADA price has been in a steady uptrend in the past few weeks. These gains started after the coin bottomed at $0.3022, where it formed a double-bottom pattern, a popular bullish sign.
It has now rallied and found a resistance at the $0.7941 level, where it struggled to move above in March. This price is a few points below the 23.6% Fibonacci Retracement level.
Cardano has also formed what looks like a cup and handle pattern, a popular bullish sign in the market. This pattern is characterized by a rounded bottom and some consolidation or pullback at the top.
The MACD indicator has just moved slightly above the zero line, while the Relative Strength Index (RSI) has pointed upwards and moved to the overbought level.
Therefore, Cardano price will likely have a strong bullish breakout in the coming days. If this happens, the next point to watch will be the 38.2% Fibonacci Retracement level at $1.333, which is about 76% above the current level.
The bullish view will become invalid if the ADA token drops below the 50-week moving average at $0.4425. Such a move would raise the odds of the token falling to the year-to-date low of $0.2350.
ADA chart by TradingView
What is moving ADA price?
Cardano is soaring for a few reasons. First, the surge is in line with the ongoing crypto comeback as evidenced by Bitcoin’s rally to over $92,000. Analysts believe that Bitcoin has more upside, potentially to $100,000 and above. Historically, altcoins like Cardano do well when BTC is soaring.
Second, Cardano price is also soaring because of the ongoing Solana surge, which has pushed it to over $250. This performance means that Solana has become an expensive asset among most retail traders.
As a result, many traders are looking for cryptocurrencies that trade at less than $1 to take part in the ongoing bull run. This also explains why popular tokens like Dogecoin and Ripple have gone parabolic in the past few months.
Third, Cardano’s fundamentals are improving. Data by Cardanoscan shows that the number of transactions has risen to over 99.49 million, meaning that they will cross the 100 million soon. At the same time, daily transactions have moved from 39,000 earlier this month to 104,000, a 166% surge.
Read more: Cardano price: what next for ADA after 130% spike?
Additionally, the recent Donald Trump election has been fuel to Cardano and other cryptocurrencies. For one, analysts now expect an easier path for crypto ETFs. If this happens, Cardano will be one of the top coins to have their ETFs as soon as in 2025.
Trump has intensified his entry into the crypto industry. According to the Financial Times, Trump Media & Technology is considering acquiring Bakkt, a company that offers crypto services.
Meanwhile, Cardano token is being boosted by the Federal Reserve, which has continued cutting interest rates this year. Risky assets like ADA do well when the Fed is easing its policies.
There have been speculation about Cardano’s next moves. For one, Charles Hoskinson has hinted that he will become a crypto advisor in the new Trump administration. The administration has not confirmed that and analysts have doubts about it.
Hoskinsin has also hinted that Cardano would make a deal with SpaceX, the biggest space company in the world. He posted a picture of himself standing next to a SpaceX rocket and hinted that he was about to sign the biggest deal of his life. Again, such a deal has not been confirmed.
To be clear: Cardano is one of the most overvalued cryptocurrencies in the industry because it does not have a growing ecosystem. Its DeFi TVl and DEX trading volume has been smaller than other newer chains like Base and Sui.
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