Cardano’s Secret Catalyst – How Will XRP Victory Affect ADA Price

Discover Crypto is one of the leading YouTube channels in the industry with over 1 million subscribers and they released a viral video about Cardano.

The crypto market has seen its fair share of drama in recent times, and some of the biggest stories have unfolded on YouTube. One channel that has been consistently churning out interesting content and amassing a huge following is Discover Crypto. With over 1 million subscribers, the channel is a go-to source for many crypto enthusiasts.

Recently, Discover Crypto made a viral video about Cardano (ADA).

Before we go into what they explained about the ADA price (down 2.5% today, now trades at $0.70), here's a brief crypto market update.

XRP Win Opens Door For Cardano

The recent news of the SEC dropping its appeal against Ripple in the XRP case has been a hot topic. This win isn’t just good for Ripple (NASDAQ:RIOT) and XRP, but also cryptocurrencies like Cardano (CRYPTO: ADA) which are still facing regulatory challenges.

In a recent video, Discover Crypto highlighted how several coins meet certain “pro-crypto” criteria in the U.S., which include:

An iShares TRIPLE ETF

A crypto ETF application

Made in America

Coin is mentioned by Trump

Founder has White House ties

The video pointed out that, besides XRP, only Cardano ticks off all these boxes. Both cryptocurrencies have iShares TRIPLE ETF applications, are being made into ETFs in America, were mentioned by Trump, and their founders have ties to the White House.

Charles Hoskinson, the creator of Cardano, has gained significant political visibility, much like the executives at Ripple. This suggests that ADA could benefit from the same regulatory attention that XRP is now receiving.

In a recent message, Hoskinson congratulated XRP on the win, calling it a “great victory for crypto.” He added that “it’s time to build again.”

Considering that the SEC is still pursuing cases against Binance and Coinbase (NASDAQ:COIN), and named Cardano in both suits, it seems ADA is next in line for the agency’s scrutiny. This puts Cardano in a position to potentially follow XRP’s path toward a win against the SEC.

Whale Activity Signals Increasing Interest

Recent data from Whale Alert shows a massive purchase of 190 million ADA in 24 hours. This level of activity is huge and signals a significant interest from large investors in Cardano.

After a period of inactivity with no transactions above $10 million, there has been a sudden spike. This suggests that smart money might be pouring into ADA before a potential price move.

Cryptocurrency Strength Index

Despite the recent price correction from the October 2022 lows, the cryptocurrency Strength Index (RSI) is showing interesting signs.

In terms of sentiment, ADA is at its highest level in four months. Recent analysis from the CoinGlass platform indicates that positive comments about ADA outnumber negative ones by 3.5 to 1.

The last time we saw sentiment this high was in late October to early November, when ADA experienced a substantial price increase. Typically, this cycle starts with a rise in sentiment, leading to a pump in the price as new investors get interested. Afterwards, whales might take profits, which in turn sparks negativity and a decline in the price. Currently, it seems we are in the initial stages of sentiment recovering again.

Technical Analysis: Important Levels To Watch

From a technical analysis perspective, ADA is testing an important support level that dates back to 2018.

On the 850 Satoshis chart, we can see that the price has encountered this level several times in the past, making it a strong support or resistance zone.

In the short-term, we can expect to see some more price volatility as a result of the XRP news and related crypto statements. According to the chart, we might see a slight dip to around $0.68-$0.69 in the immediate future. However, the bigger picture looks more positive.

If the current positive trend continues, we could see ADA pushing to new highs above $1.10, which would be a significant gain from where it stands now.

Another interesting observation is on the RSI indicator. While the price dropped to a lower low, the RSI didn’t sink as low as the previous time. This usually signifies that there is some strength building up behind the scenes.

Moreover, on the longer timeframes, we can see that Cardano’s RSI is remaining in a strong range, which suggests that there is good support for the price even with the recent price fluctuations.