Why is the Cardano price rising so fast today?

Bitcoin (BTC) has continued its big rise over the past day, but it’s Cardano (ADA) that has taken the spotlight. The popular altcoin has risen by almost 20% (!), bringing the price to its highest point in more than three months. What’s the explanation behind the stunning rally?

Cardano surpasses almost all other crypto

Cardano is one of the many altcoins that has actually extended the painful bear market of 2022 into the present. The price action has been deplorable for almost three years now, and the price still has a very long way to go before it gets anywhere close to its all-time high from the previous bull market in 2021.

Cardano has long been something of a bully within the crypto community, attracting a lot of criticism. Although there is a lot of hard work going on behind the scenes and the blockchain continues to innovate. This criticism is of course largely caused by Cardano’s disappointing share price, but it now seems to have finally woken up from its hibernation.

Yesterday in the morning, investors paid about $0.37 for Cardano, but now you will have to pay $0.43 per coin. At around 8 a.m. it was even just over $0.44. At its peak, the increase was as much as 19.5%.

And Cardano has been on its steep climb since Wednesday. In almost two and a half days, the price has skyrocketed by 32%. Those are impressive numbers.

Cardano is currently the second biggest top 100 climber of the day. Only cronos (CRO) is in better shape. The last time Cardano was able to leave so many other coins behind was a long time ago.

Why is ADA rising so fast?

But what is the reason behind the price explosion?

The increase in Cardano’s price does not appear to be related to specific developments surrounding the project itself.

Just like every other cryptocurrency, Cardano is of course benefiting fully from the presidential victory of Donald Trump. Moreover, the market has received an extra boost from the American central bank, which announced last night that it would lower interest rates for the second time – by 0.25%, that is.

Prior to Cardano’s big rise, there was a big increase in the open interest-weighted funding rate, meaning many traders were speculating on a price rise.

During the rally, many short positions (where there was speculation on a price drop) were also liquidated. That means traders have to buy back their ADA, which actually drove the increase further.

The rise has pushed Cardano above its downtrend line that has acted as resistance for months. The next stop that the price now seems to be heading towards is just above $0.50.