The price of Cardano (ADA) is on a clear rise today

Today, the price of ADA, the native cryptocurrency of Cardano, is on a clear rise. 

This rise, however, should be framed in a broader context in order to be truly understood.

The price of Cardano (ADA) in the last month

With the electoral victory of Donald Trump, a good period began for ADA in the crypto markets.

In fact, within a few weeks, the price of Cardano rose from about $0.3 to over $1.3. 

It is a remarkable performance, exceeding +100% in a month, even though in the last few days it had dropped a bit. 

The annual peak of 2024 was reached on December 3rd, while in the following days it then fell to $0.9 on Tuesday. 

At that point, it was thought that a mini-speculative bubble on the price of ADA was deflating, as often forms in the crypto markets. 

Instead, already yesterday the price of Cardano had returned above $1.1, and today it has returned to $1.15.

The price of Cardano (ADA) in recent years

This dynamic, taken in isolation, reveals that ADA is experiencing a moment of great strength, but it is significantly reduced when placed in the context of its market trend over the past few years. 

In fact, the historical record of $3.1, recorded in September 2021, still seems distant, and the recent strong rise has barely helped to recover the price levels of March 2022, a couple of months before the implosion of the Terra/Luna crypto ecosystem. 

The fact is that during the bear-market of 2022, the price of ADA plummeted to $0.24, and even at the beginning of November 2024, it was at $0.34. 

Practically after the bear-market of 2022, for almost two years it moved sideways in a very low area, slightly below the one with which it closed 2020. 

The bull of Cardano

Observing the chart of ADA’s price trend in the crypto markets over the long term, it is plainly characterized by the alternation of long periods of lateralization with brief bull and bear bubbles. 

The first speculative bull on the price of Cardano inflated at the end of 2017, when in about two months it rose from less than $0.2 to $1. 

That bubble burst in January 2018, and after about two months the price had returned below $0.2.

Subsequently, it remained substantially below $0.2 until December 2020, when a new bubble began to inflate. 

That of 2021, however, was a longer bull, because it was divided into two phases. 

The first, between January and May, brought the price of ADA for the first time in its history above $2, and the second, from the end of July to the beginning of September, brought it for the first and only time above $3.

That bubble also burst, especially in 2022, bringing the price below $0.3 within a year. 

Subsequently, before the parabolic rise of the last few weeks, it had moved sideways around $0.3 for almost two years. This last rise could also be a speculative bubble, although if it resembles the last one, it could end up inflating for about 12 months. 

The future of Cardano

The trend in the crypto markets of the price of ADA is clearly speculative. 

The fact that the bottom of 2022 was not much higher than the bottom of 2018 indicates that the all-time high of 2021 was generated by a true speculative bubble. 

It is easy to imagine that other similar episodes may occur in the future, even if now there is an important difference compared to the past. 

The point is that 2023 has been difficult for Cardano in the crypto markets, also and especially because ADA was in the crosshairs of the SEC as it was considered a possible unregistered security. 

However, with Trump’s electoral victory and the announced resignation of SEC Chairman Gary Gensler, much less bleak prospects open up for ADA. 

If, as believed, Trump’s SEC will be crypto-friendly, Cardano could also benefit from it, which could then free itself from that ball and chain that has prevented the price of ADA in 2023 from returning to high levels.

Without this weight, it could return above $2, and some believe it might even have the potential to approach $3. 

Much, however, will depend on the crypto markets, more than on the Cardano project, given that it continues to have a very low TVL in DeFi, even lower than that of Optimism and in line with that of Cronos.

From a strictly technical point of view, the Cardano project is moving forward, but especially in non-financial areas. The trend of cryptocurrencies, on the other hand, tends to be primarily linked to the financial sector, such as DeFi, and this is why ADA has never yet managed to compete with the heavyweights like Ethereum, Solana, or even XRP.