Why is Cardano price rising today?

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On November 5, the price of Cardano (ADA) rose 5.80% to $0.3409, reaching its highest level in about 4 months.

Why are ADA prices rising?

ADA price’s weekly performance of nearly 18% may be boosted by the two-day Cardano Summit 2023 taking place from November 2 to 4.

The rally is also part of a broader market recovery that began on Oct. 19 after Grayscale Investments refiled. Bitcoin U.S. Securities and Exchange Commission (SEC) ETF spot.

ADA/USD daily price chart. Source: TradingView.

Since then, the price of ADA has increased by more than 40%. The ADA/USD currency pair is also adversely affected by several other factors.

Cardano whale trading volume surges

Cardano’s recent price increase coincides with a significant increase in whale trading.

The number of deals valued at more than $1 million rose to 1,742 on Nov. 4, the highest level since January 2022, according to online data source Santiment. This increase coincides with a decline in ADA’s daily active addresses.

Cardano Whale Trading (>$1M). Source: Santiment.

The increase in whale trading combined with the rising price indicates strong buying sentiment among the wealthiest Cardano investors. At the same time, the decline in daily active addresses combined with the increase in price points to holding sentiment among investors of all sizes.

Cardano DeFi TVL is soaring

The continued growth of Cardano’s total value locked (TVL) is another positive indicator.

According to data tracked by DefiLlama, as of October 31, Cardano’s TVL reached an all-time high of 680.76 million ADA. A high TVL indicates a healthy liquidity pool, which makes the underlying network attractive to investors seeking higher incentives and returns.

ADA locks into Cardano smart contracts. Source: DefiLlama.

Cardano Price: Technological Breakthrough

ADA’s rise is also part of a broader technological breakout. Notably, ADA price successfully broke out of the popular falling wedge pattern on October 1, as shown below.

ADA/USD daily price chart with rising wedge breakout setup. Source: TradingView.

The falling wedge is considered a bullish reversal pattern. Typically, a rising wedge target is equal to the maximum distance between its upper and lower trend lines.

Therefore, the ADA price is expected to rise to $0.359 in November, an increase of approximately 5.5% from the current price.

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