Cardano price has made a strong bull run in the past few days, surging to its highest level since March 27 as demand for cryptocurrencies surged. ADA token rose to a high of $0.6585 on Monday, up by over 142% from its lowest level this year. This jump has brought its market cap to over $21.8 billion.
Cardano price could surge 35%
Technicals point to a potential 35% surge by Cardano, one of the most popular cryptocurrencies in the industry.
The coin is about to form a golden cross when the 200-day and 50-day Exponential Moving Averages (EMA) cross each other. In most periods, financial assets tend to surge after that pattern forms.
In Cardano’s example, it formed a cross in November last year, leading to a huge jump to the highest level this year.
ADA price has also rallied above the important resistance level at $0.4567, its highest level in July. It has also moved to the 61.8% Fibonacci Retracement level. Oscillators have also pointed upwards in the past few days.
Therefore, if Cardano ends the day above $0.6585, it will raise the odds of it jumping to the year-to-date high of $0.81, which is 35% above the current level. A drop below the support at $0.5500 will invalidate the bullish view.
Still, it is worth noting that, unlike Bitcoin, Cardano remains substantially below its all-time high of $3.
ADA chart by TradingView
Rotation from Solana to ADA
A likely catalyst for the Cardano price will be the rotation from the expensive Solana token to Cardano. Cardano has jumped to $230, while Cardano remains below $1, making it more affordable to most crypto investors.
Besides, Cardano and Solana are similar blockchains, only that Solana has become more popular among developers. Some analysts believe that Cardano has a chance to boost its ecosystem growth in the coming years.
Meanwhile, Cardano has jumped because of the recent Trump election that will lead to better crypto regulations. ADA could benefit by having a spot ADA ETF approval as soon as in the first half of the year. That would have been a difficult thing to happen during Gary Gensler’s term.
As part of his election, there are rumours that Charles Hoskinson could soon join the Trump administration or step up measures to influence policies.
Therefore, there is a chance that the Cardano price will continue to rise as Bitcoin approaches the $100,000 level.
