Cardano price (ADA) jumped 3.35% to $0.339 on Nov. 5, its highest level in about four months.
Why is the price of ADA rising?
ADA's weekly price performance is almost 17%, likely driven by the two days. Cardano Summit 2023held from November 2 to 4.
#CardanoSummit2023 Gala Awards Dinner!
Last night the #CardanoCommunity gathered to celebrate an extraordinary summit and honor the shining stars of our industry at the Armani Pavilion, Burj Khalifa.
Congratulations to all the well-deserved award winners! pic.twitter.com/zbz4t5GUhX
โ Cardano Foundation (@Cardano_CF) November 5, 2023
The gains are also part of a general market rally that began on October 19 when Grayscale Investments resubmitted its Bitcoin ETF Application with the United States Securities and Exchange Commission (SEC).
Since then, the price of ADA has increased by more than 40%. The ADA/USD pair is also experiencing tailwinds due to several additional factors listed below.
Cardano whale transactions surge
Cardano's recent price surge coincides with a notable increase in its whale transactions.
The number of transactions exceeding $1 million in valuation rose to 1,742 on Nov. 4, its highest level since January 2022, according to on-chain data resource Santiment. This increase came alongside a drop in ADA daily active addresses.
The increase in whale transactions along with the price rally indicates strong buying sentiment among the wealthiest Cardano investors. Meanwhile, the drop in daily active addresses along with rising prices hints that sentiment among investors of all sizes is holding.
Cardano DeFi TVL is skyrocketing
A persistent rise in Cardano total value locked (TVL) is another positive indicator.
As of October 31, Cardano's TVL had reached a record 680.76 million ADA, according to data tracked by DefiLlama. A high TVL indicates a healthy liquidity pool, making the underlying network attractive among investors seeking higher incentives and rewards.
Cardano Price: Technical Breakout
The ADA price surge is also part of a broader technical breakout. Notably, ADA price successfully broke out of its prevailing falling wedge pattern on October 1st, as shown below.
They are considered falling wedges. bullish reversal patterns. As a rule of thumb, a rising wedge target is equal to the maximum distance between your upper and lower trend line.
Related: Cardano Stablecoin Project Wasted Investors' Money Before Carpet
Therefore, ADA price is forecast to rally to $0.359 in November, about 5.5% higher than current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
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