Why Cardano (ADA) Price Rally Isn't Overbought Despite Massive 83% Weekly Surge

Most major altcoins witnessed a renewed recovery trend in November amid the U.S. election buzz and Donald Trump's victory.

Most major altcoins seemed to be recovering in November, thanks to the U.S. election and Donald Trump’s victory. Bitcoin’s price discovery also signaled a bullish trend in the broader market.

Among the top performers, Cardano price surged by 83% in a week, showing potential for further growth. At press time, ADA price was trading at $0.58 with a 28.5% intraday gain. According to Coingecko, the asset’s market cap was boosted to $20.58 billion, while 24-hour trading volume was at $2.53 billion.

Cardano price recorded a vertical recovery from $0.326 to $0.58 in the last six days—an 83% price increase. An analysis of the daily chart showed this recovery with the increasing size of green candles and trading volume, indicating a sustained uptrend.

Several factors might have contributed to the strong momentum. Firstly, the 2024 U.S. election and Donald Trump becoming the 47th president had a potential impact. Moreover, Cardano’s recent partnership with BitcoinOS enabled it to access $1.3 trillion in Bitcoin liquidity, which significantly enhanced its decentralized finance (DeFi) ecosystem.

According to the tradingview chart, ADA price also breached a key downsloping resistance of a triangle pattern. This breakout signaled the buyers’ escape from a six-month consolidation, offering suitable support to drive a higher rally.

However, today’s surge in Cardano price is likely triggered by founder Charles Hoskinson’s plans to work with the U.S. government under Donald Trump on cryptocurrency legislation.

These factors provided a major boost for Cardano’s adoption and demand for its native cryptocurrency, positioning it for further gains.

Large Holders Bet Big on ADA as Market Bottom Signals Emerge

According to Santiment data, the ADA whale holding 100 Million – 1 Billion coins has significantly increased their accumulation from 2.06 to 2.93 since mid-April. Despite the prevailing downtrend, the large holders’ buying indicates their confidence in Cardano’s further growth. Generally, this signal coincides with major market bottoms and reverses trends.

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