Cardano price jumped 30% recently, fueled by rumors of a potential collaboration between Cardano founder Charles Hoskinson and Donald Trump.
This surge has ADA breaking above a three-year resistance trendline, setting the stage for a possible 100% increase by early 2025.
Fall and rise
After a rough start to 2024, where ADA lost over 40% of its value by October, November brought a dramatic turnaround.
In just one week, the cryptocurrency wiped out nearly six months of losses, and now, it’s eyeing gains of more than 100% by March 2025.
On November 10, ADA’s price shot up over 20%, bringing it back to its April high of $0.597.
While this rally is part of a broader crypto market upswing following Trump’s reelection as a pro-crypto candidate on November 6, the real spark seems to be the chatter surrounding Hoskinson potentially joining the Trump administration in 2025.
Rumors and speculation
But don’t get too excited, Hoskinson clarified during a recent YouTube livestream that while he is setting up an office to engage with government officials, he hasn’t received any official invitation to join a crypto policy department under Trump.
As of now, Trump hasn’t announced any plans for a dedicated cryptocurrency policy group either. So, it looks like ADA’s price spike was largely driven by speculation rather than solid plans.
Despite the excitement, ADA’s recent price surge has pushed its daily RSI to levels not seen since December last year, signaling that the market might be getting overheated.
As of November 10, ADA was testing its Fibonacci retracement level at around $0.599 as resistance.
If it pulls back, we could see it dip toward the $0.548-$0.489 range by the end of November.
What does the chart says?
A pullback to this level would also retest a multi-year descending trendline. If ADA can hold above this line, it could confirm its breakout and pave the way for further gains.
Should that happen, we might see it challenge the $0.65 mark in December.
If all goes well and ADA breaks through that level, analysts predict it could reach around $1.139 in early 2025—an impressive potential rally of about 105%.
But watch out! If it fails to maintain above that descending trendline resistance, we could be looking at a false breakout and a deeper retracement down to around $0.350.
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