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ADA price breaks the multimonth downtrend pushing Cardano to four-month highs, thanks to multiple macro tailwinds and favorable technicals.
Cardano (ADA) price staged a solid rebound in the last four days, rising by over 33.7% to reach an intraday $0.436 on Nov. 8 as the market gathered strength following Donald Trump’s win in the United States 2024 Presidential Election.
ADA price is up 17% over the last 24 hours, outperforming the rest of the market, and up 28% over the last seven days.
ADA/USD daily chart. Source: TradingView
Let’s look at the factors driving the ADA price up today.
ADA price rises alongside Bitcoin, Ethereum
The bullish sentiment was not only exclusive to Cardano as crypto prices also rallied across the board, buoyed by Donald Trump’s victory in the US presidential race.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, led the gains and has jumped 9.6% over the last week to set a new all-time high of $76,943 on Nov. 7, including 12.7% gains since Nov. 5. Ether (ETH) has rallied more than 3% over the last 24 hours to trade above $2,900.
24-hour performance of top-cap cryptocurrencies. Source: Coin360
Other top-cap cryptocurrencies, including BNB Chain’s BNB, Solana (SOL), XRP (XRP), and Dogecoin (DOGE), have also posted significant gains over the last few days.
Similarly, the total crypto market cap has increased by 2% over the last 24 hours and 14% over the last four days to rest at $2.57 trillion at the time of publication.
Source: The Associated Press
Trump’s win is viewed as bullish for the crypto market following his promise to foster a crypto-friendly business environment, boosting risk-on sentiment.
In addition to the political factors, the Federal Reserve’s decision to reduce interest cuts by 0.25% on Nov. 7 has added tailwinds to the crypto market as the Fed cites easing labor market conditions and increasing confidence that inflation is moving sustainably toward the 2% target.
Source: The Kobeissi Letter
Lower rates generally boost market liquidity and support asset valuations, creating a risk-on environment where investors seek higher returns, including crypto.
ADA sees a spike in funding rates
ADA’s bullish price action on Nov. 8 is preceded by a jump in open interest-weighted funding rate. The chart below shows that ADA’s 8-hour OI-weighted funding rate has increased to 0.0159% on Nov. 7, the highest since June 2024.
This suggests a high appetite for long positions as ADA’s price gained around 17% over the last 24 hours.
ADA OI-weighted funding rates. Source: CoinGlass
ADA’s rally on Nov. 8 was accompanied by short liquidations totaling $1.67 million against $247,484 in long liquidations, with that tally continuing at the time of publication.
ADA liquidations. Source: CoinGlass
In other words, short traders were caught off-guard by ADA’s rise to $0.438.
Cardano price more gains ahead
Cardano’s gains today are part of a technical rebound that started on Nov. 5. Notably, the latest rally has seen the layer-1 token break above its multimonth descending trendline resistance, as shown below.
ADA has witnessed various failed attempts to rise above this resistance, the most recent being its 32%-plus gains between Sept. 6 and Sept. 27, which was capped by sellers at $0.42.
ADA/USD weekly price chart. Source: TradingView
As a result of this technical setup, the next logical target for ADA bulls will be the April 22 range high of $0.52, a 19% uptick from the current price.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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