While the altcoin season is yet to be fully blown out, many leading altcoins by market capitalization are already in green alongside bitcoin (BTC), which is on course to reach the $100,000 price mark this month. One such top-performing crypto asset in November 2024 is the Cardano blockchain native token, ADA. What’s behind ADA’s price rally and how far can it jump in this bull cycle?
ADA sees over 200% gains in November.
Trading below $1 since April 2022, Cardano (ADA) finally surged past the $1 price mark last week as bullish momentum in the crypto market reached higher levels. Notably, ADA rallied as high as $1.14 on Friday before retracing and consolidating at $1.0 at the time of writing.
At this current level, Cardano’s impressive price performance translates to an increase of 206% in the past 30 days, per Coingecko data. Meanwhile, in the past 24 hours, ADA boasts a 10% price gain at the time of writing.
Following its recent rally, ADA’s market capitalization has risen above a staggering $38 billion. Positioning it the 9th largest cryptoasset by market cap as of 23 November 2024, ADA comes behind XRP and Dogecoin (DOGE) whose market caps are in excess of $80 billion and $60 billion, respectively.
Read also: What is Cardano (ADA)?
Driving forces behind ADA’s surge and predctions
Beyond the increasing bullish sentiments in the broader crypto market, several factors have also played a role in the ADA price rally above $1. Some of these factors include:
- Rising whale accumulation and institutional interest
Deep-pocketed investors commonly known as whales and institutional players have been buying massive amounts of ADA in the past month. This indicates a growing interest in the utility token. IntoTheBlock data, shared by an on-chain analyst Ali Martinez, shows that large ADA transactions on the Cardano network have been on the rise in November 2024, surpassing $22 billion daily last week.
“Those large transactions appear to be related to high accumulation levels,” Martinez submitted, sharing statistics of whale accumulation of ADA. Notably, Cardano whales holding from $1 million to over $10 million worth of ADA have increased their holdings by more than 145% in the past 30 days. This high buying pressure is believed to be a major contributing factor to the recent rally in ADA price.
“The high buying pressure is starting to move prices, and from a technical perspective, Cardano seems to be mirroring its previous bullish cycle. If this pattern holds true, ADA could target $6,” he concluded.
- Increased social media engagement
Amongst other positive developments, ADA has recorded increased social media engagements this month. Leading behavioral analysis platform Santiment corroborated this fact in a Friday X post. According to Santiment data, social media discussion rate toward ADA reached its highest level last week. Such a high social media engagement level was last seen for the cryptoasset in early December 2023.
“[…]Social media discussions are currently at their highest level for the coin [ADA] in 11 months,” Santiment wrote. Overall, the increasing social engagement rate for ADA indicates renewed interest in the cryptoasset which could lead to more capital inflow into the asset.
- Cardano founder engagement with U.S. lawmakers
The recent surge in ADA’s price has also been attributed to Cardano founder Charles Hoskinson’s recent engagement with U.S. lawmakers. Following Donald Trump’s re-election into the White House, Hoskinson has been actively discussing with U.S. regulators on matters concerning friendly crypto regulation.
Read also: Are we in Altcoin season yet?
In a recent Bloomberg show, the Cardano founder, Hoskinson, stated that the ongoing deliberation aims to establish a crypto commission that will oversee regulations across different crypto sectors, ranging from crypto exchanges to stablecoins. Further, he noted that his engagement with U.S lawmakers is focused on the executive and legislative approach to cryptocurrency, with a focus on resolving the long-standing debate on whether cryptoassets are securities or commodities.
Cardano community members believe these developments could potentially provide regulatory clarity for ADA, which was labeled a security last year by the Gary Gensler-led U.S. Securities and Exchange Commission (SEC).
Read also: What is fueling XRP’s 100% price increase in the past 14 days?
Cardano price analysis
At the time of writing, ADA is trading at $1, reflecting a 5.4% decline in the past 24 hours. This retracement follows its climb to a high of $1.14 on Friday, a level not seen since April 2022.
The ADA/USDT chart highlights the $0.92 level—near the 50% Fibonacci retracement—as a crucial support zone. If this level holds, ADA could regain momentum, potentially breaking above $1.14 and targeting the $1.25 and $1.64 price levels. Conversely, a close below $0.92 might trigger further declines, with prices possibly falling to the 61.8% Fibonacci retracement at $0.86 and later to $0.80.
Additionally, the Relative Strength Index (RSI) indicates ADA is in the overbought zone. This signals a higher probability of continued price declines or a consolidation phase, during which ADA might trade within a range of $0.92 to $1.14 over the next few days.
Read also: How to Build a Diversified Crypto Portfolio
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
