ADA Surges 30% on Speculation of Cardano-Trump Partnership

Cardano (ADA) has been one of 2024’s most underperforming cryptocurrencies, with its value plummeting over 40% through the end of October. Yet, November has brought a dramatic shift, as ADA quickly recouped nearly half a year’s worth of losses within just one week, raising hopes for potential 100% gains by early 2025.

On November 10, ADA surged over 20%, reaching its April high of $0.597. This rise aligns with a broader crypto market rally following pro-crypto candidate Donald Trump’s reelection on November 6. However, much of ADA’s rapid spike has been attributed to speculation that Cardano founder Charles Hoskinson might join the Trump administration in a key role related to cryptocurrency policy.

Despite the buzz, Hoskinson clarified in a recent YouTube livestream that while he plans to establish an office for government relations, there has been no formal invitation to join Trump’s team. As of November 10, Trump has also not made any official announcements about forming a cryptocurrency-focused policy group, suggesting that ADA’s price spike was driven more by speculation than confirmed news of a Hoskinson-Trump collaboration.

ADA price may double despite risks

ADA’s price rally has pushed its daily relative strength index (RSI) into overbought territory, the highest since December 2023. This condition indicates a potentially overheated market, which might encourage some investors to lock in profits in the short term.

Currently, ADA is testing a critical resistance level around $0.599, based on its 0.618 Fibonacci retracement level. A possible correction could lead to ADA falling toward the 0.5-0.382 Fibonacci levels, placing it in the $0.548-$0.489 range by the end of November.

This potential pullback might also serve as a retest of a multi-year descending trendline, recently broken by ADA, seen in the weekly chart. If ADA can hold support at this level, it would confirm the breakout and provide a base for further growth. This support could propel ADA toward its next resistance at the 0.786 Fibonacci level, around $0.65, by December.

Should ADA break above this threshold, it could aim for the 0.618 Fibonacci level near $1.139 by early 2025, representing a potential 105% increase. Conversely, failure to sustain the breakout could lead to a deeper correction toward the ascending trendline around $0.350.

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