Originally published on: November 20, 2024
Cardano’s price has seen a remarkable 140% increase in November, largely attributed to the reelection of Donald Trump as the US president. However, there are indications that a significant portion of these gains may be at risk in the near future.
Analyzing ADA’s price movement, a bearish pattern known as a “rising wedge” has emerged on the four-hour chart. This pattern typically indicates a potential trend reversal to the downside, with a projected target near $0.598 in the short term and $0.513 in a more extreme bearish scenario for November and December.
Furthermore, the declining volume during ADA’s recent uptrend serves as a warning sign, suggesting a weakening rally. The chart also shows bearish divergence between rising prices and a falling RSI, indicating a loss of upside momentum.
If ADA breaks below the wedge’s lower trendline, it could lead to a correction of around 40% from current levels. However, a breakout above the upper trendline could negate the bearish outlook and potentially test the $0.90 resistance level.
Looking ahead, while a correction in ADA’s price is possible, the fundamentals of Cardano have been boosted by Trump’s reelection. His administration’s stance on crypto regulation may increase demand for cryptocurrencies like ADA in 2025.
It’s important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research before making any investment decisions.
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