Cardano (ADA) has emerged as one of the biggest winners following U.S. President Donald Trump’s announcement of a national crypto strategic reserve. The news sent shockwaves through the market, sparking speculation about the inclusion of major altcoins like Cardano, XRP, and Solana (SOL). In response, ADA surged nearly 60%, as trading volume skyrocketed amid investor excitement.
Trump’s Crypto Reserve: A Market Game-Changer?
President Trump’s declaration of a U.S. Crypto Strategic Reserve came with sharp criticism of the Biden administration’s regulatory stance. Initially, Trump confirmed that Cardano, XRP, and Solana would be part of the reserve, while Bitcoin (BTC) and Ethereum (ETH) were notably absent. However, he later clarified that BTC and ETH would also play a central role in the initiative.
The market’s response was immediate and explosive. ADA’s rapid price jump highlighted growing optimism about its role in the evolving crypto-political landscape.
ADA’s Meteoric Rise: Technical Analysis
Following the announcement, ADA saw a significant spike, breaching key resistance levels as traders piled in. On the hourly timeframe, ADA/USD surged past key moving averages, signaling strong bullish momentum. The Relative Strength Index (RSI) briefly entered overbought territory above 73, while the MACD histogram flipped positive, further reinforcing the upward trend.
On-chain data from Santiment revealed a surge in large transactions exceeding $1 million, indicating heightened whale activity. This institutional interest played a crucial role in ADA’s sharp ascent, though profit-taking led to a slight pullback.
Market Sentiment and Future Trajectory
Open interest in ADA futures soared beyond $1.2 billion post-announcement, suggesting a surge in leveraged bets. However, funding rates remained negative, hinting that short traders are aggressively positioning for a correction. If buying pressure sustains, a short squeeze could propel ADA past the $1.20 mark.
For now, ADA’s price trajectory depends on whether bulls maintain momentum or face profit-taking pressure. If Cardano’s inclusion in Trump’s strategy garners institutional interest, it could solidify its position as a strategic asset beyond speculative trading.
Also Read: Cardano (ADA) Soars 73% as Trump’s Crypto Reserve Sparks Investor Frenzy
With market volatility at an all-time high, traders will be watching closely to see if ADA’s rally has lasting power or is just another fleeting surge.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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