Cardano (ADA) has taken the crypto market by storm, rebounding significantly in recent days. The token’s price surged by over 33.7% to reach $0.436 on Nov. 8, following Donald Trump’s victory in the 2024 U.S. Presidential Election. This bullish sentiment propelled ADA’s price up by 17% in the last 24 hours alone, outperforming the broader crypto market, which has also benefited from positive sentiment.
Political Tailwinds – Trump’s Win Fuels Crypto Optimism
Trump’s pro-crypto stance has contributed to ADA’s impressive rally, alongside other major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). During his campaign, Trump pledged to support a crypto-friendly business environment, a commitment that has fueled a “risk-on” sentiment across financial markets. Trump’s administration is widely expected to reduce regulatory burdens on digital assets, encouraging investment and growth in the space.
This optimism has propelled BTC to new highs, with the asset hitting $76,943 on Nov. 7, marking a 9.6% gain in the past week. Similarly, ETH traded above $2,900 after a 3% increase, while other top cryptocurrencies, including Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE), have also rallied. The total cryptocurrency market cap surged by 2% in the past 24 hours and 14% over the last four days, reaching $2.57 trillion.
Federal Reserve’s Interest Rate Reduction Boosts Liquidity
In addition to the political boost, the Federal Reserve’s decision on Nov. 7 to reduce interest rates by 0.25% has provided another tailwind for ADA and the broader crypto market. Lower interest rates typically lead to increased market liquidity, supporting asset valuations and enhancing investor appetite for riskier assets like cryptocurrencies. The Fed’s actions signal confidence in the economy’s path toward a 2% inflation target, prompting investors to seek higher returns in the crypto space.
Spike in ADA’s Funding Rates Signals Bullish Sentiment
ADA’s recent rally is further supported by increased interest in long positions, as evidenced by a spike in its open interest-weighted funding rate. This metric, which reached 0.0159% on Nov. 7 (the highest since June 2024), highlights traders’ strong appetite for ADA. Additionally, ADA’s surge triggered approximately $1.67 million in short liquidations, showing that short sellers were caught off guard by ADA’s upward momentum.
Also Read: Cardano (ADA) Price Prediction – Is ADA Ready To Reach $3.10? Technical Analysis Reveals Potential
The recent rally represents a technical rebound for Cardano, with ADA finally breaking through a multi-month descending trendline resistance on Nov. 8. Cardano has faced previous failed attempts to sustain gains above this resistance, the last significant effort occurring between Sept. 6 and Sept. 27, when the token’s gains were capped at $0.42. Now that ADA has surpassed this critical level, the path may be cleared for further upside if bullish momentum persists.
Cardano’s latest rally underscores the importance of political and economic factors on the crypto market. Trump’s victory and the Federal Reserve’s interest rate reduction have created favorable conditions for risk assets, particularly for ADA, which has shown impressive resilience. As Cardano continues to break technical barriers, further price gains could be on the horizon, especially if the current market momentum endures.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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