The Bitcoin (BTC) bull cycle is on. In its rise, it is also dragging cryptocurrencies along. Among them, there are some that are waking up from a "long nap", as is the case of Cardano (ADA).
The following graph shows how ADA's price has behaved since January 2024:
You don't need to be a technical analysis specialist to realize that the cryptocurrency created by Charles Hoskinson was performing poorly, with a noticeable downward trend.
It was only in the last week that BTC gave ADA the push it needed to wake up.
On Wednesday, November 6th, ADA was trading at $0.32. At the time of this writing, it is trading for approximately $0.61. This represents more than 84% increase in just 4 days!
Some Cardano defenders may argue that this rise was due to reasons specific to this project, such as the Chang update (which took place in September) or the creation of new bridges that facilitate the entry and exit of tokens on that network.
But realistically, the current surge is attributable to the ripple effect of Bitcoin and the regulatory changes that a Donald Trump presidency in the United States could bring. The president-elect has promised to create regulations that favor the cryptocurrency industry.
Donald Trump has won over the Bitcoin electorate. Source: image generated using Grok
Furthermore, Trump promises to fire Gary Gensler, current chairman of the Securities and Exchange Commission. Will ADA cease to be considered a security by this body? We will have to wait at least until January, when Trump takes office, to find out.
It is worth clarifying that it is not only ADA that is on the rise. At the time of this publication, all cryptocurrencies in the top 100 by market capitalization (with the exception of stablecoins) are in the green, considering the price variation they have had in the last 7 days.
