Cardano (ADA) Price Surges by Around 70% Following Trumps Announcement
As shown on the ADA/USD chart, the price of this cryptocurrency asset soared from $0.66 to $1.15 in just a few hours, marking a new peak for 2025.
Why Is Cardano (ADA) Rising?
The main driver behind Cardano's (ADA) price surge was US President Donald Trumps decision to establish a Strategic Cryptocurrency Reserve.
In a 2 March post on the Truth social media platform, the US president announced that he had instructed the Presidential Task Force on Digital Assets to include XRP, Solana, and Cardano in the reserve, emphasising that Bitcoin (BTC) and Ethereum (ETH) would be the "heart of the reserve."
Unsurprisingly, the price of ADA and other mentioned crypto assets received a strong bullish boost.
Technical Analysis of the ADA/USD Chart
Since December 2024, when the initial optimism following Trumps victory seemed to fade, ADA/USD price movements have formed a descending channel (marked in red), with the following developments:
The news of the US cryptocurrency reserve pushed the price beyond the upper boundary of the channel.
However, resistance at the $1.15 level sent the price back into the descending channel.
If market sentiment has genuinely turned bullish, ADA is unlikely to drop below the former resistance level of around $0.83, which is roughly 50% of the BA rallymeaning todays pullback from peak A would appear to be a correction after a sharp surge.
Otherwise, ADA may consolidate within the descending channel and continue a downward trajectory.
For further insights on ADA price forecasts, visit: Analytical ADA Price Forecasts: What Will It Be Worth in 20242050?
Read more: https://fxopen.com/blog/en/oa-cardano-ada-price-surges-by-around-70-following-trumps-announcement/
Text source: Forex Trading Blog
