TLDR
- ADA price surged over 60% after President Trump announced inclusion in Strategic Crypto Reserve
- Large investors (whales) accumulated over 130 million ADA tokens in the days before the rally
- Cardano saw a 157% increase in unique active wallets and 200% jump in daily transactions
- Total Value Locked (TVL) on Cardano jumped 54% from $323 million to $499 million
- Price needs to hold above $1.00 level to continue upward momentum
Cardano (ADA) has seen a dramatic price increase in recent days, rising over 60% from lows of $0.64 on March 2 to reach $1.19, a 12-week high. This rapid growth followed President Donald Trump’s announcement about creating a Strategic Crypto Reserve that would include Cardano.
The price movement began after Trump shared on his Truth Social platform that he directed the President’s Working Group on Digital Assets to include XRP, Solana, and Cardano in the planned Crypto Strategic Reserve. He later added Bitcoin and Ethereum, noting they would be at the “heart of the reserve.”
This announcement marks a shift in US policy toward digital assets. The move appears to be part of Trump’s stated goal to support the crypto industry after what he described as regulatory challenges under the previous administration.
The market reacted quickly to the news. ADA price jumped approximately 70% within hours of the announcement, reaching around $1.20 before settling into a consolidation phase.
Before the public announcement, large investors were already making moves. Data from market intelligence firm Santiment shows that “whale” investors holding between 10 million and 100 million ADA tokens had been steadily buying more following the recent price drop to $0.57.
These large holders added more than 130 million ADA tokens to their wallets over a three-day period. This kind of accumulation often hints at future price increases, as these investors can have major market impact.
Network activity also jumped during this time. DappRadar reported a 157% increase in unique active wallets on Cardano within a 24-hour period, reaching 3,720.
Daily transactions on the network rose even more sharply. They increased by over 200% to 17,120 in the same timeframe, showing growing usage of the blockchain.
The Total Value Locked (TVL) in Cardano’s decentralized finance protocols saw a big jump too. This key metric rose 54% from $323 million on March 2 to $499 million on March 3, according to data from DefiLlama.
Technical Analysis
From a technical analysis standpoint, Cardano’s price movement showed a high-volatility breakout. The rally helped ADA push past several key resistance levels.
Currently, the price is forming what some analysts call a “bullish consolidation” around the $1.05 level. Technical analysts suggest this might be an accumulation phase before another possible move upward.
For continued upward momentum, experts say ADA needs to maintain support above the $1.00 level. This psychological price point could serve as a foundation for further gains if the market sentiment remains positive.
The immediate resistance level to watch is at $1.19, while the key support sits at $1.05. If the price breaks below this support, it could test lower levels at $0.90 or even $0.80.
Looking at the hourly chart, there appears to be a contracting triangle formation with resistance near $1.1450. If the price can clear the $1.15 resistance zone, analysts suggest it could potentially move toward the $1.22 region.
Further resistance levels exist at $1.25, which could be tested if the current bullish momentum continues. However, if buying pressure fades, the price could fall back to test the $1.00 support zone.
The current price action shows decreasing volume during the consolidation phase. Some market observers interpret this as a typical pattern before another potential upward move, assuming support levels continue to hold.
ADA’s current trading level at around $1.05 represents a 73% recovery from its recent lows of $0.57, showing the impact of both the presidential announcement and the increased network activity.
