Cardano (ADA) has seen significant growth over the past four days, with its price rising an impressive 32%. In the last 24 hours alone, ADA has increased by 16%, bringing its market capitalization to $14.932 billion. This growth pushed Cardano back to its position as the ninth-largest cryptocurrency by market capitalization. Several factors contributed to this upward momentum:

#1 Bulls are taking over the entire cryptocurrency market

The positive market sentiment extends beyond Cardano, with the cryptocurrency market as a whole experiencing significant growth. This upward movement is mainly due to Donald Trump’s victory in the US presidential election. The Trump administration has pledged to end the “war on cryptocurrencies” and make the United States a central hub for the crypto business.

Positive momentum was added by the Federal Reserve’s decision on November 7 to reduce interest rates by 0.25%, which provided an additional tailwind for the cryptocurrency market. The Fed cited easing labor market conditions and increased confidence that inflation is steadily moving toward the 2% target. Analysts from The Kobeissi Letter excellent that the vote to cut interest rates was unanimous. Powell concluded that “labor market conditions have generally improved” and that “risks to achieving the goals remain roughly balanced.”

#2 Cardano whale activity

Santiment, a supply chain analytics company highlighted a pointed augment in whale activity near Cardano. In a recent post on X, they observed that ADA is “one of the notable surprise altcoins to launch during this crypto pump.” They suggested that “we could expect retail FOMO soon,” confirming that this surge “has been a long time coming for the ADA patient community.”

Santiment reported that Cardano breached $0.43 for the first time since July, rising 25% in three days due to “massive networking and whale activity.” Specifically, they pointed out that in a single day, 37,892 unique ADA addresses made transfers – the most since the September 4 low – and 697 transactions exceeded $100,000, also the highest since that date. This augment in enormous transactions and energetic addresses indicates increased interest from mainstream investors, signaling the potential for continued growth momentum.

#3 Technical breakthrough

Unlike many other altcoins, ADA is in a long-term decline. However, the recent rally could mark a key turning point, pointing to a potential bullish reversal. Since August, Cardano’s price has been making a series of higher lows.

The current move also allowed ADA price to break above the downtrend line that has dictated price movement since April after being rejected five times previously. The breakout can be considered significantly bullish as it coincides with a higher low pattern.

It is worth noting that during this rally, ADA exceeded the 20-, 50-, 100-, and 200-day moving averages. Additionally, ADA breached the Fibonacci retracement level at 0.236, the most critical point of horizontal resistance. Today’s successful retest of this $0.40 price level could pave the way for further gains.

At the time of publication, ADA was trading at $0.4266.

Featured image from Shutterstock, chart from TradingView.com