Cardano (ADA) embarked on an exciting journey in October, surging by an impressive 15.4%. This upward momentum has left ADA enthusiasts excited about what November might bring. However, as the crypto market’s volatility remains a constant, what lies ahead for ADA in the new month? ADA is currently valued at $0.291, showing a 1% increase in the last 24 hours. It holds the 8th rank in the crypto market with a market cap of $10.26 billion.
TVL Reached $197 Million, Historically a Good Month?
The recent price surge of Cardano is intrinsically linked with the ecosystem’s total value locked (TVL). DeFiLlama data highlights that Cardano’s TVL has increased by 27.94% over the past two weeks, reaching $197 million. Notably, the two prominent DeFi projects, Minswap and Indigo, account for a substantial $92.36 million of this TVL. This rapid surge in TVL not only reflects growing confidence but also indicates increased adoption of Cardano. With more assets in the network, ADA could potentially sustain its rally toward the coveted $0.5 mark.
Historical clues by Cryptorank give a bear sign as the trends indicate a potential minor correction for ADA this month. While the average monthly return for ADA in November over the years stands at an impressive 43.5%, the median monthly return hints at a -2.5% fall. That builds the scenario of only one November saw a significant surge of 85%.
This leaves ADA traders with two choices for November: a potential breakout above $0.3 per token or a bearish trend to $0.25. Are you considering buying Cardano this month? Hang on there’s more to the story.
November Has Mixed Scenarios: Will Bulls Beat Bears?
In this context, ADA holders face three potential scenarios for November. First, a bullish scenario could see ADA surging to $0.41 per token, driven by a growing TVL and the potential introduction of significant upgrades by the Input-Output Global (IOG) team.
The second scenario is more neutral; ADA may continue to trade around its current price of $0.29 while awaiting a significant catalyst to breach the $0.5 mark. The final scenario where bears take control involves a less likely pullback to previous levels of around $0.24, potentially triggered by broader market fluctuations or negative news.
ADA’s bullish divergence, observed in the Relative Strength Index (RSI) and moving averages, is an encouraging sign. While temporary pullbacks may occur due to external factors, the bullish trend remains intact, offering ADA enthusiasts hope.
As ADA enters November, uncertainty prevails, with the potential for bullish developments and global economic risks on the other. Ultimately, the true trajectory of ADA’s November journey will be unveiled with time.
