30s Summary

Cardano’s (ADA) price rose 140% in November reportedly due to US President Donald Trump’s reelection, but, trends hint at a possible 35% drop. ADA’s price charts signal a ‘rising wedge’ pattern that shows a potential downwards turn. Trading volumes declining and the widening gap between higher prices and a decreasing relative strength index (RSI) also hint at a price drop. If prices fall below the ‘wedge’ pattern, we could see prices as low as $0.598 or even $0.513. However, Trump’s reelection promises lighter cryptocurrency regulation and could potentially push ADA demand in 2025. The future of ADA’s price remains uncertain.

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Cardano’s price (ADA) has rocketed up by 140% in November, largely thanks to Donald Trump getting reelected as the US President. But hold your horses, there are signs that this Trump-driven ADA increase may start to dwindle soon.

Some facts and figures are hinting at a potential 35% drop for ADA, as its price charts are showing what’s called a “rising wedge” pattern, usually suggesting a downwards turn might be on the horizon.

If the price of ADA falls below this ‘wedge’ pattern, it could take a rather steep dip. In practical terms, this means we could see prices as low as $0.598 in the short term or possibly even down to $0.513, if things really go south for November to December period.

There are also other factors that hint at this price drop risk. For example, trading volumes have been declining recently. Similarly, there seems to be a growing gap between higher prices and a decreasing relative strength index (RSI) – essentially this also suggests an uphill battle for ADA’s price.

The RSI itself has crept up to a level of 68, getting worryingly close to ‘overbought’ territory (70), suggesting that ADA might be headed for a price correction.

But it’s not all doom and gloom – a strong breakout above the ‘wedge’ might invalidate these downward predictions. If we see higher volumes combined with this, it could pave the way for ADA to reach the $0.90 resistant level.

Looking at the broader picture, $0.90 has historically been a tough sell-off point for ADA. For instance, we’ve seen drops of up to 65-75% after hitting this resistance level in March 2024 and April 2022. But who’s to say it couldn’t be different this time around.

In the event of a price drop, ADA’s next ‘target’ on the weekly price chart seems to sit around $0.476 – a roughly 40% drop.

ADA’s weekly RSI is at a bracing seven points above the ‘overbought’ threshold, which fits into this longer-term price drop assumption.

On a more positive note, thanks to Trump’s reelection, Cardano’s fundamentals have had a significant boost. His administration has promised to keep cryptocurrency regulation light-tough, which could potentially push the demand for ADA, amongst other cryptocurrencies, in 2025.

This recap isn’t meant to guide your trading choices. Every trading decision comes with risk, so do your homework before making a decision.