A company that is changing the way the world mines bitcoin

Coinpaprika 2025-03-03 08:35:42

Cardano Surges 60% Following Trump's Crypto Reserve Announcement

Cardano ( ADA ) has surged by 60% following the announcement of President Donald Trump’s US Crypto Reserve, with ADA breaking past the $1 mark for the first time in over a month. This strong rally marks a significant recovery for the token, which had been in a downtrend for six weeks prior to the announcement. The price movement has triggered optimism among investors, with the MVRV Long/Short Difference indicator showing an increase in long-term holders’ profits, suggesting growing confidence in Cardano’s long-term prospects. This indicates that the rally might not be short-lived, and ADA could continue its upward momentum. However, while the price surge has been significant, Cardano's price action is now in overbought territory according to the Relative Strength Index (RSI), which typically signals a potential price reversal. But historical data on ADA shows that when the RSI enters overbought territory, it often continues its upward movement rather than reversing, giving hope to bullish investors that the rally could extend. This further supports the possibility that Cardano could keep rising despite the overbought signals . To maintain this bullish momentum, Cardano needs to hold the $1.00 level as support. If it fails to do so, the price could drop back to lower levels , with $0.85 being the next key support zone. However, if ADA manages to secure $1.00 as support, it may continue to rise, potentially pushing towards new highs. Investors will need to closely monitor the $1.00 level, as its performance will be crucial in determining whether Cardano can sustain its rally or see a correction. If the support level holds, it would reinforce the positive market sentiment and set the stage for further gains.