The price of Cardano (ADA) soared 3.35% to $0.339 on November 5, hitting the highest level in about four months.
Why are ADA prices rising?
The weekly performance of ADA price is almost 17%, which is likely to be boosted by Cardano Summit 2023, which will be held over two days from November 2nd to November 4th.
#CardanoSummit2023 Gala Awards Dinner!
last night #CardanoCommunity Gathered at the Armani Pavilion at the Burj Khalifa to celebrate a remarkable Summit and honor the industry’s shining stars.
Congratulations to all the award winners! pic.twitter.com/zbz4t5GUhX
— Cardano Foundation (@Cardano_CF) November 5, 2023
The rally is also part of an overall market rebound that began on October 19, when Grayscale Investments resubmitted its Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC).
Since then, ADA prices have risen more than 40%. The ADA/USD pair is experiencing headwinds due to several additional factors listed below.
Cardano whale trading surges
Cardano’s recent price surge coincides with a notable increase in whale trading.
The number of transactions with a valuation exceeding $1 million rose to 1,742 on November 4, the highest since January 2022, according to on-chain data resource Santiment. This surge coincided with a decline in ADA’s daily active addresses.
The surge in whale trading coupled with rising prices indicates strong buying sentiment among the wealthiest Cardano investors. Meanwhile, the decline in daily active addresses coupled with the rise in prices suggests sentiment is holding up among investors of all sizes.
Cardano DeFi TVL is soaring
The continued rise in Cardano’s Total Value Lock (TVL) is another positive indicator.
As of October 31, Cardano’s TVL reached an all-time high of 680.76 million ADA, according to data tracked by DefiLlama. A high TVL indicates a healthy liquidity pool, which makes the native network attractive among investors seeking higher incentives and rewards.
Cardano price: technical breakthrough
ADA’s price rise also appears to be part of a broader technological breakthrough. In particular, the price of ADA successfully broke out of the typical falling wedge pattern on October 1, as shown below.
A falling wedge is considered a bullish reversal pattern. Typically, a rising wedge target is equal to the maximum distance between the upper and lower trend lines.
Related: Cardano stablecoin project gambles away investors’ money.
Therefore, the price of ADA is expected to rise to $0.359 in November, approximately 5.5% above the current price level.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.