Cardano Price Risks Wiping Out 40% of ‘Trump Trade’ Gains by December
Cardano has surged 140% this November, riding on rosy market sentiment after Donald Trump won the re-election to become the United States president. But upcoming technical resistances indicate that the cryptocurrency is setting up for a major pullback in the coming weeks, losing as much as 40% of its gains before December.
ADA Flashes 35% Correction Amid Weaker Technicals
Cardano’s ADA price charts are painting a picture that raises concern. A rising wedge has taken shape in the four-hour frame-a bearish structure featuring trendlines that slope upwards and converge. Traditionally, the pattern alerts of an imminent reversal in price with breakdown targets as deep as the height of the wedge.
If the price of ADA breaks below the wedge’s lower trendline, then analysts predict a short-term target of $0.598, with the potential to plunge all the way down to $0.513 in an extreme bearish case. These figures represent a possible 35%-40% decline from ADA’s value today and may serve as a warning to traders who have been riding the recent bull wave.
Geopolitical Influences and Market Sentiment
The reason behind the rally in Cardano’s price is mainly because of Trump’s reelection, which injected confidence in the broader cryptocurrency market. Political stability often persuades investors to shift funds into speculative assets, including digital currencies like ADA.
While political factors can drive temporary surges, the strong fundamentals are necessary for continued growth. Given that the price of ADA is currently being driven by sentiment, the rally may not have enough steam to buck the bearish signals presented by the rising wedge.
Security Concerns Loom Over Crypto Space
While ADA swings wildly, the greater crypto market remains in jeopardy due to social engineering scams and phishing. The reports of scammers impersonating the support teams of exchanges have gone up lately, which bolsters the case for investor caution.
A well-profiled case involved a Coinbase user who lost $6.5 million in a social engineering attack. While the crypto market is growing, these incidents show the ongoing risk despite the improved blockchain technology.
Conclusion
Cardano’s impressive November rally may face headwinds as technical indicators point to a possible reversal. While Trump’s reelection has driven short-term gains, market participants should remain cautious, especially with the rising wedge pattern suggesting potential price declines. For investors, vigilance in both trading strategies and cybersecurity practices will be essential to navigating this volatile period.
