Cardano price rose by 4% on Wednesday, Nov. 4, as investors bought the dip after it hit a crucial support level.
Cardano (ADA) rose to $0.5450, up from this month’s low of $0.5035. It remains about 50% below its highest level in August. Its recovery happened amid the cautious crypto market rally.
Bitcoin (BTC) and most altcoins were in the green, with the market capitalization of all tokens rising to $3.46 trillion. This rebound happened as Polymarket traders boosted their odds that Donald Trump will lose on tariffs at the Supreme Court.
Cardano is also benefiting from the current stage of the Glacier airdrop. In a statement, the team noted that they were increasing the NIGHT allocation during the scavenger mine to 1 billion NIGHT.
The scavenger mine is the second phase of the Glacier airdrop, allowing more users to claim their NIGHT tokens. It will run through Nov. 29, and will be followed by the redemption phase, which will happen before the Midnight mainnet launch.
Cardano is betting on Midnight amid its ecosystem’s stalled growth. Data shows that Cardano’s total value locked in the decentralized finance industry has dropped by 32% in the last 30 days to $247 million. It has a limited stablecoin supply.
In a recent statement, Charles Hoskinson noted that Midnight will be a Cardano asset. This means that all assets in its ecosystem will be counted as part of it.
Cardano price also rose as the futures open interest rose modestly, a sign of potential demand. It jumped to $657 million from $604 million a day earlier.
The daily timeframe chart shows that the ADA price bottomed at $0.5030 this week. This was a critical level where it failed to move below several times this year.
There is a risk that the coin has more downside. It has formed a death cross pattern as the 50-day moving average dropped below the 200-day MAA on Oct. 22.
The coin is now forming an inverse cup-and-handle pattern, with the lower side at $0.5034 and the upper side at $1. This means that the depth is about 50%. Measuring the same distance from the cup’s lower point gives it a target of $0.2428. That’s about 50% below the current level.
