Date: Sat, Nov 16, 2024, 10:35 AM GMT
The cryptocurrency market is roaring back to life as Bitcoin (BTC) climbs 2.55% to reclaim its position above $91,000 after a brief period of correction. This bullish momentum has been partly driven by the announcement of the “Bitcoin Act of 2024” (S.4912) introduced by U.S. Senator Cynthia Lummis, proposing the creation of a Strategic Bitcoin Reserve.
Riding on Bitcoin’s coattails, Cardano (ADA) has surged over 25% today and an astonishing 125% over the past 30 days, hitting a current price of $0.77 with a market cap of $27 billion.
Hoskinson’s Hint Drives the Rally
The current rally appears to be bolstered by a cryptic hint from Charles Hoskinson, the founder of Input Output Global (IOG). During a recent video posted on X, Hoskinson revealed his visit to California and time spent with Elon Musk’s SpaceX team.
While praising their work and dedication, he mentioned that discussions took place under an NDA (non-disclosure agreement), leaving the crypto community speculating about potential collaborations or developments involving Cardano. This excitement has likely contributed to ADA’s impressive surge.
Will the Next Breakout Take It Above $1?
The attached chart shows that Cardano is currently trading at $0.77, positioned within a key resistance zone ranging from $0.7441 to $0.81.
From this point, we can anticipate the following scenario:
- Bullish Breakout: If ADA successfully breaks through this resistance level, the price could rally toward the next major resistance at $1.24, marking a potential 73% upside from the current price.
However, consolidation around the current levels is possible before ADA gathers sufficient momentum for the breakout.
- RSI (Relative Strength Index): At 87.31, the RSI indicates overbought conditions, which might lead to a short-term correction. However, high RSI levels also suggest strong buying pressure.
If ADA continues to sustain strong volumes and positive market sentiment, the next breakout could mark a decisive move for the token.
Conclusion
Cardano’s performance has been nothing short of spectacular, driven by both market momentum and anticipation of potential future developments hinted at by its founder. If ADA can clear the $0.81 resistance zone, a rally toward $1.24 seems highly probable. Investors should keep an eye on key support and resistance levels, as well as any updates on Charles Hoskinson’s hinted collaboration.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.