On October 5, ADA rose 11% in a single day to $0.273, its highest level since May this year.
The rally was not driven by a single cause; several factors came together:
In August this year, T. Rowe Price added ADA to its actively managed crypto ETF (TKNZ), which has approximately $16.5 million in assets under management, with ADA accounting for 0.44%. This marked the first time a traditional U.S. financial product officially allocated a portion to ADA—it was listed only after the U.S. Securities and Exchange Commission (SEC) completed its compliance review. The significance of this move goes beyond the size of the allocation itself.
On October 3, RealFi (a real-world asset platform that Charles Hoskinson co-invested in) officially launched on mainnet, announcing an annual yield of around 9%.
On October 7 and 8, Cardano will appear at the TOKEN2049 Singapore conference.
These three factors came together alongside a short squeeze — CoinGlass data shows $1.89 million in short positions liquidated over 24 hours, about 94% of total liquidations.
But there’s one figure worth paying attention to today:
The price rose by 11%, while DEX trading volume on the Cardano chain fell from $11.74 million on October 1 to $5.72 million on October 3.
The price is rising, but on-chain activity is declining — this momentum is coming from centralized exchanges and derivatives markets, not genuine on-chain demand.
This doesn’t mean the rally is fake, but its continuation depends on whether on-chain activity data catches up in the coming period.
$0.28 is the nearest resistance today, while holding above $0.25 is the minimum level bulls are clinging to.
What do you think of this ADA rally?
