Cardano (ADA) has kicked off 2026 on a positive note, surging nearly 8% today, surpassing the $0.36 mark and securing a spot among the top altcoin gainers for the day. This upward trend follows a challenging December, during which ADA experienced a drop of almost 20%, leading many investors to exercise caution.
So, what factors are propelling Cardano’s price higher today?
CryptoQuant Data Indicates Whale Accumulation
One of the main factors contributing to ADA’s surge can be traced back to data from CryptoQuant. Recent on-chain data reveals heightened activity from large holders, commonly referred to as whales. Both spot and futures data show an influx of significant orders entering the market.
When whales start accumulating again, it often signifies a growing confidence in the asset. According to CryptoQuant, market conditions are improving, with buying pressure gradually mounting. This suggests that the current uptrend is more than just a temporary rebound.
Aside from trading data, Cardano’s network is displaying tangible signs of utility. Transaction volume and wallet interactions have seen an uptick in recent days, indicating active usage of the blockchain rather than mere holding of ADA.
Cardano DeFi TVL Reflects Recovery Signals
Another positive indication stems from Cardano’s DeFi ecosystem. According to DefiLlama, Cardano’s Total Value Locked (TVL) has increased by 4% in the past 24 hours, reaching approximately $178.9 million. This uptick suggests a growing number of users are entrusting their funds to Cardano-based DeFi platforms.
Typically, an influx of capital into DeFi platforms signifies a bolstered trust in the network, potentially leading to increased demand for the ADA token.
Cardano Price Analysis
For several months, ADA has been consolidating within a descending wedge pattern. This pattern emerges when the price continues to decline, but selling pressure gradually diminishes. As the price range tightens, it often foreshadows an imminent breakout.
Presently, ADA is holding steady near the $0.35 support level, providing stability to the price as buyers cautiously step in, indicating a reduction in selling pressure.
Crypto trader Captain Faibik shared a chart illustrating ADA nearing the end of the descending wedge pattern. He anticipates a potential breakout if the price breaches above the upper trendline.
As long as ADA maintains support, the technical setup remains robust. A breakout could potentially propel the price towards the $0.52–$0.55 range, representing a nearly 50% increase from current levels.
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