- Charles Hoskinson’s remarks sends ADA soaring to 6-month highs.
- However, ADA’s state pointed to an impending correction.
Cardano [ADA] has made a remarkable comeback, rebounding from a prolonged downturn that began with the broader market decline in April.
While the altcoin experienced a renewed bull run since last week, triggered by Bitcoin’s [BTC] remarkable surge, it skyrocketed to extend its weekly gains by 77%.
Over the weekend, ADA went up to $0.65, marking its highest price since April. At press time, it traded at $0.58, up by around 2% over the last 24 hours as per CoinMarketCap.
However, what prompted this sudden rise?
ADA’s rise, Charles Hoskinson’s ambition
Interestingly, ADA’s surge came after the co-founder of Cardano, Charles Hoskinson unveiled fresh initiatives aimed at supporting and shaping U.S. crypto regulations.
In a recent video posted on X, he shared his commitment to,
“Working with lawmakers in Washington DC…and members of the administration to help foster and facilitate with other key leaders in the industry with the crypto policy.”
Crypto policy: By Americans, for Americans
Hoskinson emphasized the potential for major political shifts, noting that Republicans could gain control of the Senate, Presidency, and House, presenting a unique chance for the crypto industry to achieve regulatory clarity.
The exec emphasized the importance of American stakeholders, including the domestic crypto industry and supportive lawmakers, in shaping these policies.
He also announced plans to open a policy office at Input-Output headquarters by January 2025 to engage in policymaking and collaborate with leaders.
The objective, Hoskinson noted, is to create a bipartisan bill that defines clear boundaries between securities and commodities, providing greater operational certainty for crypto businesses.
Exec weighs in
Building on Hoskinson’s proactive approach, Sheldon Hunt, Head of the Cardano Ecosystem at EMURGO, posted on X,
“The future is Cardano. The future is Bitcoin. The future is crypto.”
These latest comments follow Donald Trump’s return to the White House. Trump, known for advocating pro-crypto policies, has pledged to provide clearer regulatory guidelines for the industry.
Coinciding with these strategic initiatives, the network saw a significant boost in activity. Data from Santiment showed that daily active addresses increased by 133.36% over the past day.
The social volume also jumped by 106.67%. These metrics point to a growing interest and participation in the Cardano ecosystem.
Is a pullback on the horizon?
Worth noting that the recent rise secured ADA a spot among the top weekly gainers. Meanwhile, AMBCrypto took a closer look at the daily chart to reveal that since early August, it was trading within the $0.31 to $0.40 range.
Furthermore, since October, the price remained below the $0.36 midline until the recent momentum pushed it above the upper range limit, testing $0.61.
Source: TradingView
As a result, the RSI entered the overbought territory, standing at 84.74 at press time. This signaled a potential correction.
Read Cardano’s [ADA] Price Prediction 2023-24
Additionally, the 50-day EMA [blue] and the 100-day EMA [yellow], formed a golden cross, typically a bullish signal.
If a pullback occurs, maintaining the $0.40 support would be crucial. A drop below this level could shift the trend toward a bearish outlook and potentially lead to further declines.
