Cardano Recovers 2.5 Years of Losses in Just One Month in the Crypto Market
Cardano (ADA), Ethereum’s oldest competitor, has compensated for losses over the past 2.5 years with a significant price increase of over 170% in November. As the 9th largest asset in the cryptocurrency market, ADA's rally in November continues to influence investors. Some analysts have noted that the current price trend of the cryptocurrency resembles that of previous bull rallies. Additionally, several technical indicators suggest that the upward movement has just begun and that momentum could continue.
During the 2020 bull season, Cardano saw its price increase from $0.087 to $3.16, representing a gain of 2,680%. Currently, ADA has begun a new recovery cycle, moving towards the psychological price level of $1 with a nearly 30% increase this week. According to IntoTheBlock data, the net flow of large holders of Cardano has reached 67.51 million ADA, indicating a significant sentiment shift among whales.
Overall, an increase in net flow shows that whales are buying more, which is considered a positive signal for the cryptocurrency. Conversely, a decrease in net flow indicates that whales are selling more, generating a negative signal for the market. The recent increase in net flow is noted to be worth approximately $55 million, suggesting that the accumulation by ADA whales could help the altcoin provide further gains.
The SEC Development Triggering ADA This exponential increase in value specific to Cardano coincides with the Trump effect and SEC Chairman Gensler's plans to step down. Indeed, the SEC had referred to ADA as a security in lawsuits against cryptocurrency exchanges, posing a significant obstacle to the project’s development.
Previously, the Cardano network faced criticism from the community for its slow development. These setbacks caused the ADA price to experience sharp declines during the bear season, preventing significant developments in the Blockchain network from being priced in.
Recent Developments Related to the Cardano Ecosystem This week, the Cardano Foundation released a proposal for updating the Cardano Constitution aimed at improving the governance of the Blockchain ecosystem. Founder Charles Hoskinson expressed optimism about ADA's future in 2025.
Hoskinson indicated that the current developments contribute to a successful structure alongside proper governance of the Blockchain network, asserting that these changes would support the strong foundations of ADA. This advancement is also believed to contribute to ADA's rise.
According to current data, ADA ranks 9th with a market capitalization of $31.6 billion. It is currently 70% away from its previous peak of $3.10 reached during the last bull cycle in 2021, needing to increase by nearly 250% from its current value to reach this peak again. However, some commentators, considering the cryptocurrency's performance over the past month, do not see a low probability of new peaks for ADA based on technical indicators and historical price movements.