Cardano (ADA) has staged an impressive recovery, bouncing back from a severe decline that started with the general market plunge in April. However, Donald Trump’s win has given the altcoin market a renewed bullish trend last week, led by Bitcoin’s (BTC) significant rally toward $85K. This momentum has made Cardano to extend its weekly gains by over 80%. As bears prepare for a minor correction amid rising on-chain trends, analysts expect a significant 50% rebound.
ADA Rises on Charles Hoskinson’s Ambition
The recent surge in the ADA price is supported by several metrics. However, ADA price is now holding on to its buying demand due to Charles Hoskinson’s ambition.
Hoskinson stressed the role of American stakeholders, such as the local crypto sector and supportive legislators, in influencing crypto policies.
Also read: Cardano News Today: ADA Eyes Major Bull Run After 79% Rally
Additionally, he revealed plans to establish a policy office at Input-Output headquarters by January 2025 to participate in policy development and collaborate with key figures.
Hoskinson aims to develop a bipartisan bill that distinctly delineates securities from commodities, offering clearer operational guidelines for crypto companies.
Following Donald Trump’s return to the White House, where he is known for his pro-crypto stance, he has committed to clearer regulatory frameworks for the industry.
As a result, the network experienced a substantial increase in activity. According to Santiment, daily active addresses surged by 133% and social volume increased by 106%. Data from IntoTheBlock indicates a massive surge in large transaction volume over the last seven days.
The large transaction volume surged from the low of $5.8 billion to the recent peak of $21.8 billion, suggesting a rising demand among whales. Interestingly, this metric surged following ADA’s recent bullish comeback, hinting at an increased whale activity during the rally.
ADA price might be gearing up for a 50% rally as NVT ratio (Network Value to Transaction) signals potential breakout. Data reveals a sudden decline in the NVT ratio from 2.91 to 2.26, suggesting that the transaction volume is surpassing the network value despite the price rise.
This shows a strong under valuation of ADA price, suggesting immediate increases in price.
What’s Next for ADA Price?
Cardano broke through and closed above the $0.65 resistance, signaling a favorable resolution of its consolidation for the buyers. However, bears are strongly defending the price chart as ADA price struggles to hold above $0.6. As of writing, ADA price trades at $0.59, surging over 1.4% in the last 24 hours.
There’s slight resistance at $0.65, but if the bulls maintain the price above $0.6, the likelihood of surpassing this level increases, potentially pushing the ADA/USDT pair towards $0.67. A constant buying pressure will send the ADA price above $0.8.
Conversely, a break and close below the EMA50 trend line would be the first sign of weakness, suggesting aggressive selling at $0.55 and possibly leading to a drop towards the moving averages. This could result in a broad trading range between $0.4 and $0.55.
