Why is Cardano (ADA) price up this week?

Cardano (ADA) staged a solid rebound in the last 24 hours, rising by over 8.50% to reach $0.363 on Nov. 2. In doing so, it outperformed the broader crypto market, which rose by a little over 1% in the same period.

ADA/USD four-hour price chart. Source: TradingView

ADA’s gains largely coincided with the conclusion of the fourth annual Cardano Summit 2024 in Dubai. Furthermore, they surfaced alongside the latest United States jobs data showing a low unemployment rate in October.

Cardano Summit boosts ADA price upside

ADA’s rally today likely stemmed from the positive sentiment surrounding several key developments and announcements made at the 2024 Cardano Summit.

For instance, EMURGO, the blockchain firm advancing Web3 adoption on the Cardano network, partnered with BitcoinOS (BOS), a smart contract platform for Bitcoin, to bring Bitcoin's $1.3 trillion in liquidity to Cardano's DeFi ecosystem.

The 2024 Cardano Summit further showcased high-profile speakers and partnerships with entities like Binance and Animoca Brands.

Large events like the Cardano Summit often generate speculative interest, with traders and investors buying in anticipation of announcements that could increase network value and utility.

Low unemployment rate benefits risk assets

ADA’s rally in the past 24 hours mirrored gains witnessed across the risk market, with an increasing odds of an interest rate cut following the latest US jobs report.

Notably, US hiring in October grew at its slowest pace since 2020, with nonfarm payrolls adding just 12,000 jobs—a slowdown partly influenced by severe hurricanes and a major strike at Boeing.

US labor market data October. Source: Bureau of Labor Statistics/Bloomberg

Nonetheless, the unemployment rate held steady at 4.1%, while average hourly earnings showed a modest increase, according to Nov. 1’s report from the Bureau of Labor Statistics.

The jobs report serves as the final key economic indicator ahead of the Federal Reserve’s meeting next week and the Nov. 5 presidential election.

According to CME data, the likelihood of a 25 basis-point rate cut in November has risen to 98.9%, up from 94.8% prior to the report’s release.

Target rate probabilities for Nov. 7 Fed meeting. Source: CME

Lower rates generally boost market liquidity and support asset valuations, creating a "risk-on" environment where investors seek returns in higher-risk markets, including crypto.

ADA, being a major altcoin, benefits from this influx of capital as it mirrors the rally seen across equities and other risk-on assets.

Cardano price eyes 35% rally by 2025

Cardano’s gains today are part of a technical rebound. Notably, the cryptocurrency has gained by over 15.50% a week after testing its multi-month ascending trendline support, as shown below.

ADA/USD weekly price chart. Source: TradingView

Earlier, ADA has witnessed sharp price rebounds from the same support level, the most recent being its 50%-plus gains in August. However, the upside gains have been capped by the 50-week (red) and 200-week (blue) exponential moving averages (EMAs).

As a result of this fractal, ADA now eyes further gains toward the 50-week EMA at around $0.424, up by approximately 15% from the current price level, in November. If it breaks above the 50-week EMA, the next potential target will likely be the 200-week EMA at around $0.477 by the end of this year.

Related: Is crypto 'altseason' coming? Watch these 3 key signals in the months ahead

Interestingly, the 200-week EMA, up 35% from the current prices, coincides with ADA’s multi-year descending trendline resistance.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.