Cardano (ADA) rose by 60% following U.S. President Donald Trump’s announcement of a national crypto strategic reserve. We explore what's behind this surge and what potential scenarios might unfold.
Market Reaction to Trump’s Announcement
On the day of the announcement, President Trump confirmed certain altcoins like XRP, Solana (SOL), and Cardano (ADA) would be included in the U.S. Crypto Strategic Reserve. Initially, Bitcoin (BTC) and Ethereum (ETH) were left out, but Trump later clarified they would be at the core. The news had an immediate impact: Cardano surged 35% in the first hour and 60% as trading continued, accompanied by a rise in trading volume and activity among large 'whale' accounts, signaling institutional interest. At the time of writing, Cardano is trading around $0.8, experiencing some retracement.
Technical Analysis: Measuring the Momentum
The technicals look promising for Cardano. Using major exchanges' data, several key indicators stand out. Current price (~$0.81) reflects a 60% surge. The RSI at 73 suggests strong buying momentum, with a chance for correction. MACD histogram is positive, indicating bullish momentum, while the 100-hour SMA supports the upward trend. Analysts see a bullish trend line on the hourly chart with support at $0.90-$1.00 and resistance at $1.30 and $1.35.
Institutional Interest and Trading Data
Santiment on-chain data shows significant transaction volume increase for ADA post-announcement. Whale activity also increased with several transactions over $1 million. The futures market saw notable activity, with ADA's futures open interest surpassing $1.2 billion. The funding rate remains negative, suggesting potential for a short squeeze if momentum persists.
Cardano’s 60% price surge following the U.S. Crypto Strategic Reserve announcement showcases both the volatility and promise of the crypto market. The key question is whether this is the start of a long-term trend or a short-term spike in speculation.
