Cardano price spiked sharply on Sunday, going up by 72% to reach its highest level in more than ten weeks. The uptick was driven by renewed opimism in crypto assets following US President Donald Trump’s assertion on the establishment of a strategic federal cryptocurrency reserve.
However, ADA returned below the psychological $1 mark on Monday as many investors took profit. President Trump listed ADA in a list of five cryptocurrencies identified for inclusion in the yet-to-be-established strategic federal cryptocurrency reserve. The other coins in the list include Bitcoin, Ethereum, Solana and XRP.
Inclusion of ADA in the Federal Reserve would not only increase its demand, but also boost the institutional adoption of the coin. However, an executive order is likely to have a limited power as to the amount of funds that can be allocated towards the etsablishment of the reserve.
In addition, such a reserve could be reverted by an executive order in case of a change of guard at the White House. Congressional approval would be needed to establish a bigger reserve. Nonetheless, Trump’s announcement is a timely shift to crypto market fundamentals following its recent slump.
Meanwhile, ADA’s open interest rose by 113% in the last 24 hours, signaling the likely continuation of the Cardano price upside. Also, Cardano chain’s DeFi Total Value Locked (TVL) rose by 45%, affirming the strong upside. Trump will host the first-ever crypto summit at the White House next week. The sentiment and anticipation is likely to result in a strong upside momentum for Cardano price in the coming days.
The momentum on Cardano price favours the upside if action stays above $0.93, with immediate resistance likely to be at $1.00. Breaking above that level will strengthen the upward momentum and potentially test the second barrier at $1.052.
On the downside, breaking below 0.938 will favour the sellers to take control. In that case, Cardano price will likely find the first support at $0.900. Breaking below that level will invalidate the upside narrative and potentially test the second support at $0.865.
This post was last modified on Mar 03, 2025, 10:48 GMT 10:48