March proved to be a volatile month for the Cardano cryptocurrency. ADA experienced sharp fluctuations amid news of the US crypto reserve and actions by major investors.
Rise and Subsequent Effects
At the start of March, ADA's price rose above $1.10 following former President Donald Trump's announcement about the US crypto reserve, which was said to include Cardano. This led to increased investments in ADA, but the subsequent official directive did not include ADA, triggering a price drop below $0.70.
Large Holders' Sales
Amid these events, major investors began selling off ADA. Analyst Ali Martinez reported that 200 million tokens worth approximately $136 million were sold. Nonetheless, large holders still possess about 5.8 billion ADA, accounting for 16% of circulation.
Potential Prospects and ETF Impact
By the end of March, ADA experienced a modest 2% growth over the month. Some analysts believe that ADA could see a significant rise if the price surpasses $1.15. Grayscale's application for a spot ETF, filed in February and subsequently acknowledged by the SEC, could also alter the landscape, offering more investment opportunities.
March was a tense month for Cardano, with sharp price changes and actions by major holders. Potential future ETF approval could open new prospects and attract additional investors.
