Trump's Crypto Reserve Boosts Cardano's 60% Surge

Generated by AI AgentCoin World
Sunday, Mar 2, 2025 3:06 pm ET1min read
ADA
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Cardano (ADA) has experienced a significant price surge, rallying by 60% after a six-week downtrend. This remarkable turnaround comes on the heels of the announcement that US President Donald Trump's Crypto Reserve includes Cardano, acting as a key catalyst for this price movement. ADA has now reclaimed the $1 level, a psychological threshold that traders and investors alike have been closely watching.

The MVRV Long/Short Difference indicator has shown a substantial uptick, suggesting that the profit margins of long-term holders (LTHs) have surged. LTHs typically play a crucial role in maintaining a cryptocurrency's price stability, and their decision to hold rather than sell prevents price drops and supports price increases. This behavior aligns with the recent price surge, as long-term holders are choosing to hold ADA, reinforcing the bullish momentum.

The Relative Strength Index (RSI) for Cardano has entered the overbought zone, which is traditionally a bearish sign indicating potential price reversals. However, historical data on ADA reveals that a rise into the overbought zone has often signaled the continuation of upward momentum, not a reversal. This suggests that despite the overbought indication, Cardano could still continue its rally.

At the time of writing, Cardano's price is up 60%, trading at $1.06. This marks a significant recovery after the altcoin had struggled below the $1 mark for six weeks. The price increase is a direct result of the market's reaction to Trump's announcement, with ADA making a strong push above $1. This level is crucial as it marks a psychological threshold for both traders and investors.

The breakout above the $1 barrier is a sign that ADA may be gearing up for further rallies. For Cardano to maintain its upward momentum, it needs to secure $1.00 as a reliable support level. A failure to hold this level could lead to a loss of momentum and a return to lower price levels. If 1.00 can be maintained as support, it could fall back toward the next key support level at $0.85. However, maintaining support at $1.00 would solidify the rally and pave the way for further price increases.