Cardano Soars 60% to $1.05 Following Trump’s Crypto Reserve Announcement
Cardano (ADA) has experienced a remarkable price surge, rallying approximately 60% after being included in US President Donald Trump’s newly announced “US Crypto Strategic Reserve.”
This dramatic price movement has pushed ADA above the psychologically important $1 threshold for the first time in over a month, ending a six-week downtrend and rekindling investor interest in the third-generation blockchain platform.
Cardano Breaks Out of the Bearish Pattern
Cardano has been caught in a protracted downturn since December 2024, creating what technical analysts noted as a bullish flag and pole pattern on weekly charts before this comeback. With [[ADA/USD]] now trading around $1.05, the abrupt upward rise has broken ADA free from this structure. The newest market data shows.
For ADA’s short-term future, technical indicators present a positive image. Normally indicating possible price reversals, the Relative Strength Index (RSI) has entered overbought territory. But historical data shows that when ADA’s RSI approaches overbought levels, it usually points to ongoing momentum rather than a quick turn-around.
“We have often seen further price increases rather than pullbacks when looking at past cases of ADA’s RSI entering overboved territory,” said one market watcher. “This suggests the current rally may have more room to run despite conventional overboved signals.”
Why is Cardano Surging?
President Trump’s declaration of a US Crypto Strategic Reserve that particularly includes Cardano alongside other prominent cryptocurrencies like Bitcoin, Ethereum, XRP, and Solana served as the main driver behind ADA’s sharp price surge.
Although specifics of the reserve are still unknown, early news suggests the government would make use of already confiscated bitcoin assets via law enforcement operations instead of new purchases. Legal experts are discussing whether establishing such a reserve calls on Congress to intervene, therefore generating some doubt about execution.
Notwithstanding these concerns, the market has responded fervently to the disclosure; trade volumes for ADA have surged by around 800% in the 24 hours after the news. This remarkable rise in trade activity shows growing investor interest after Cardano’s inclusion in the prospective reserve.
Cardano’s Strong Fundamentals
Beyond changes in the market, Cardano keeps strengthening on its technical basis. The platform uses a two-layer architecture and a novel Proof-of- Stake (PoS) consensus mechanism that provides energy economy benefits above Proof-of- Work systems.
Recent political changes have also helped Cardano’s position to be strengthened. Recently approved by the blockchain, its constitution lays groundwork for distributed governance that upholds responsibility and openness in decision-making. By successfully activating the Plomin hard fork, ADA holders could actively engage in protocol choices, therefore completing Cardano’s shift to a totally distributed governance architecture.
ADA/USD Technical Analysis: Long-Term Holder Confidence Growing
The MVRV Long/Short Difference indicator shows a notable rise indicating that long-term holders (LTHs) are seeing rising profit margins. Given LTHs usually constitute the basis for price stability in any cryptocurrency, this indicator is especially crucial.
Long-term investors that prefer to keep rather than sell help to avoid downward price pressure by staying in profit and rather promote further growth. Strong investor confidence in ADA’s long-term prospects shown by current data points to this rise perhaps signifying the start of a long-term upswing instead of a brief price surge.
Critical Support and Resistance Levels
For Cardano to maintain its bullish momentum, several key price levels will be crucial in the coming days:
$1.00: This psychological threshold now serves as critical support. Maintaining this level is essential for continued upward movement.
$1.15-$1.20: Multiple analysts identify this zone as the immediate resistance area that ADA needs to clear for further gains.
$1.90: Some technical analyses suggest this as a potential longer-term target, representing a possible 90% increase from current levels if bullish momentum continues.
If ADA fails to hold support at $1.00, it could fall back toward $0.85, which would invalidate the current bullish outlook. However, a weekly close above $1.05 would significantly strengthen the case for continued upward movement.
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