TL;DR
- Cardano (ADA) made a strong comeback, soaring to a 14-week high after a double-digit daily surge.
- The generally bullish market, among other reasons, has potentially fueled the asset’s rise.
Returning to the Top 10 Club
Cardano (ADA) experienced a notable resurgence in the past 24 hours, with its price jumping by approximately 20% at one point. It briefly exceeded $0.44, the highest level observed since July.
Currently, ADA trades at around $0.43, while its market capitalization is well above $15 billion. This means that the asset flipped Tron (TRX) to become the 10th-biggest in the entire crypto sector.
One potential factor fueling ADA’s impressive rally could be the market’s overall bullish environment. Most leading cryptocurrencies have been making gains since Donald Trump’s victory in the US presidential elections. Bitcoin (BTC), for instance, tapped a new all-time high of over $76,800.
Another element possibly contributing to the sector’s revival is the Federal Reserve’s decision to cut interest rates by 0.25%. Such a move makes money-borrowing cheaper and could increase the interest in risk-on assets like cryptocurrencies.
ADA’s double-digit price increase coincides with several on-chain indicators that flash bullish signals. The “In the Money” metric, which measures the change in the number of Cardano investors currently sitting on paper profits, is up by 13%. As of the moment, 36% of the token’s holders are in the green, while 58% remain underwater.
In August this year, the percentage of profitable ADA investors dropped to almost 0%. Back then, the the asset’s valuation plunged below $0.30.
Last but not least, we will focus on the large transaction volume (where each on-chain ADA transaction exceeds $100,000). The figure reached $8.5 billion on November 8, representing a 13% spike in 24 hours.
Is FOMO Coming Soon?
The market intelligence platform Santiment noted ADA’s pump, suggesting that “some retail FOMO” might follow next.
“This has been a long time coming for the patient ADA community,” the entity added.
Fear of Missing Out is a psychological phenomenon where people feel anxious to take action because they worry about missing an opportunity that others are currently experiencing.
As more investors rush to hop on the bandwagon, the asset’s value can explode. Each jump makes more people worry about missing potential gains, fueling additional demand.
With FOMO-driven buying, though, prices can fluctuate wildly. The volatility is often heightened as some early investors start to take profits, causing mini-sell-offs. This can turn into a cycle of panic selling, triggering substantial dips.
The post Why Is the Cardano (ADA) Price Up by 16% Today? appeared first on CryptoPotato.
ADA is the best-performing top 20 cryptocurrency today (November 8). ADABTC, ADAUSD, Crypto Bits, Crypto News, Cardano, Cardano (ADA) Price, Donald Trump, Federal Reserve
This articles is written by : Nermeen Nabil Khear Abdelmalak
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