The momentum of recent weeks on Cardano has undoubtedly taken a good portion of investors in the crypto market by surprise. What can we expect after such a rapid and powerful increase of more than 200% in the price of the ADA token?
Can the ADA still achieve an ATH during its 3rd cycle?
It is Friday, November 29, 2024 and the Cardano price is around $1.07.
They are rare, these coins capable of outperforming their previous all-time high from cycle to cycle. Cardano, often criticized for its fundamentals, is one of these exceptions. In 2021, the ADA reached a peak more than twice that recorded in January 2018.
Happy is anyone who could predict that ADA will follow in the footsteps of Bitcoin in constant search of new peaks to surpass. However, it is clear that Cardano is at the right time and in the right place to try to achieve this.
Indeed, he could benefit from the election of Donald Trump. Supported by the mathematician Charles Hoskinson, who was, before embarking on his project, one of the 5 co-founders of Ethereum. Cardano is part of the batch of projects made in USA.
Now in 9th position in the ranking of cryptocurrencies, with $38.21 billion in market capitalization, ADA is an example of resilience by managing to maintain its position at the top of the ranking for several years. SO, where are we technically on this crypto asset?
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| Pairs with ADA | 24 hours | 7 days | 1 month |
| ADA/USDT | +6.60% | +17.50% | +203.3% |
| ADA/Bitcoin | +4.50% | +19.30% | +123.90% |
| ADA/ Ethereum | +7.80% | +9.30% | +124.10% |
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Continuation of trend for ADA!
The explosion recorded at the beginning of November for the Cardano project is a movement that is unequivocally reminiscent of the previous cycle. In 4 weeks, ADA had recorded a performance close to 300%, going from 0.34 to 1.31 dollars.
What is of concern today is the level on which Cardano is based to launch its rally: $0.33.
Past performances do not predict future performances, however the rally that we have just started bears a strong resemblance to the momentum of February 2021. The next resistance is in sight, between 1.20 and $1.30. We are therefore approaching a zone of turbulence which has been worked on for a long time during the 2021 cycle.
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The daily chart shows a nice uptrend. The Bollinger Bands are aligned upwards, the moving averages are aligned and upwards, forming a flow that so far consistently raises to the 7-day moving average.
The resistance zone is approaching, which could lead to a deeper pullback towards the 20-day moving average. It is nevertheless difficult to anticipate whether this withdrawal movement will occur before or after coming into contact with resistance.
Everything will depend on how strong Cardano still has and what phase the entire crypto market is in. If the entire altcoin market continues to send good signals, ADA can cross $1.15 and continue towards resistance to seek the upper limit at $1.30.
However, if the context does not allow it, ADA may need to consolidate towards its SMA 20 in order to regain strength and restart upwards. In the event of a correction across all markets, we can set the polarity level at $0.77, a level above which it must continue to close to maintain the inertia of the momentum it has just initiated. .
Daily ADA price graph
In summary, ADA crypto is one of the winners of the American election. It is evolving in a powerful bullish flow which is approaching a major resistance zone. The next few days could confront the trend with resistance and trigger necessary consolidation to continue the rally.
So, do you think ADA can continue its trend to the point of surpassing its 2021 ATH? Don't hesitate to give us your opinion in the comments.
Have a nice day and we'll see you soon for a new technical analysis of altcoins.
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Sources: TradingView, Coinglass, Glassnode
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Analyst at Cryptoast Research for several years, I carry out in-depth monitoring of the crypto market to analyze the next narratives while keeping an eye on the financial markets.
Emmanuel Lazaro
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