What is the reason for the increase in Cardano's price today?
Cardano's price is showing a November rebound, and on-chain data indicates that ADA whales are backing this rally.
Cardano's price has experienced a significant upswing, surging by 3.35% to reach $0.339 on November 5. This marks the highest level it has achieved in approximately four months, and several factors are contributing to this impressive performance.
First and foremost, the weekly performance of ADA has been remarkable, with an almost 17% increase. This surge can be attributed to the Cardano Summit 2023, a two-day event that took place from November 2 to November 4. The summit likely generated increased interest and enthusiasm among the Cardano community and potential investors.
The recent price gains are also part of a broader market rebound that began on October 19 when Grayscale Investments refiled its Bitcoin ETF application with the U.S. Securities and Exchange Commission (SEC). This event had a positive spillover effect on various cryptocurrencies, including ADA.
ADA/USD daily price chart. Source: TradingView
One noteworthy development that has contributed to Cardano's price rally is the increase in whale transactions. These are transactions involving amounts exceeding $1 million in valuation. On November 4, the number of such transactions reached 1742, marking the highest level since January 2022. This surge in whale transactions is a strong indicator of buying sentiment among the wealthiest Cardano investors, signaling confidence in the cryptocurrency's future.
Cardano's whale transactions (>$1 million)
Additionally, Cardano has seen a steady rise in its total-value-locked (TVL) within decentralized finance (DeFi) protocols. As of October 31, the TVL for Cardano had reached a record high of 680.76 million ADA, according to data tracked by DefiLlama. A high TVL is a positive sign, as it indicates a healthy liquidity pool on the Cardano network, making it an attractive option for investors seeking higher incentives and rewards through DeFi platforms.
ADA locked across Cardano smart contracts. Source: DefiLlama
From a technical perspective, ADA's price has experienced a breakout from a falling wedge pattern, which occurred on October 1. Falling wedges are considered bullish reversal patterns, and the breakout suggests a shift in momentum that favors ADA's price moving forward. This breakout has likely added to the positive sentiment surrounding Cardano's price and its potential for further growth.
ADA/USD daily price chart ft. rising wedge breakout setup. Source: TradingView