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Cardano (ADA), the ninth-largest cryptocurrency, is setting its sights on the $1 mark, reaching highs of $0.919 in today's trading session.
As Bitcoin (BTC) approaches $100,000 for the first time, hitting $99,000 during Friday's trading session, capital is rotating to alternative cryptocurrencies (altcoins), raising expectations on the broader crypto market.
According to on-chain analytics firm Santiment, Cardano and other altcoins are rapidly growing their market caps, fueled by a redistribution of profits from Bitcoin’s recent surge.
Cardano (ADA) is outperforming with recent gains; the cryptocurrency has increased 15% in the last 24 hours, currently trading at $0.91, according to CoinMarketCap data. This is the highest price since May 2022.
The ADA price rose 44% this week, bringing the month-to-date increase to 150%. The token's market valuation has risen to $30.8 billion, making it the world's ninth-largest digital asset, according to CoinMarketCap data.
If today closes in green, ADA will have gained for five days in a row. With $1 firmly in sight, the focus is on where the ADA price might go next.
📈 While eyes have been on Bitcoin making history, altcoins like XRP, Cardano, Stellar, Hedera, Mantra, and Algorand are growing their respective market caps rapidly. As long as BTC maintains a ~$95K+ support , expect November profits to continue redistributing to altcoins. pic.twitter.com/AXNyVd46Ro
— Santiment (@santimentfeed) November 21, 2024
According to Santiment, Cardano's potential growth is closely tied to a crucial Bitcoin support level. Santiment noted that as long as BTC maintains a support level of around $95,000, November could see continued gains for ADA as profits continue redistributing to altcoins.
Cardano nears $1
Bitcoin's surge has revived interest in the cryptocurrency market, boosting altcoins such as ADA. Cardano began increasing from a low of $0.326 on Nov. 5. The rise cleared the daily moving averages of 50 and 200, as well as the $0.8 level, reinforcing the bullish trend.
Given ADA's recent spike, bulls are aiming for $1 next. This level may pose a significant challenge, but once cleared, ADA might rise to $1.25 and even $2.
This optimistic outlook will be discredited in the short term if the ADA price falls below $0.8 and further to $0.7. This could entice short-term buyers to take profits, dragging the ADA price lower to $0.58.