Cardano (ADA) Plunges 25% to $0.79 After 76% Rally Following Trump’s Strategic Reserve Inclusion
Cardano (ADA) is currently trading at approximately $0.79, marking a significant 25% decline over the past 24 hours. This price movement comes after a dramatic surge of over 50% last week following President Trump’s announcement about including ADA in a proposed U.S. strategic cryptocurrency reserve.
Trump’s Crypto Reserve Announcement Spurs Initial Cardano Rally
President Trump announced plans via Truth Social on March 2 including Cardano among XRP, Solana, Bitcoin, and Ethereum in a government cryptocurrency stockpile. The announcement set off instantaneous market reaction; ADA responded most dramatically—surging over 40% within 24 hours after the news.
From a daily average of around $15 million in late February, traders have dramatically raised their ADA futures positions to more than $26 million in notional value, according data from Bitrue exchange. Especially, almost 92% of these roles are long, suggesting strong bullish attitude in spite of recent market fall.
Cardano’s Fundamentals and Development
Originally presented as a major rival to Ethereum ETH/USD, Cardano ADA/USD was started by co-founder of Ethereum Charles Hoskinson in 2015. By using the Ouroboros Proof-of- Stake (PoS) consensus mechanism, the blockchain platform drastically lowers energy usage than the Proof-of- Work system of Bitcoin BTC/USD.
Cardano has struggled with production delays and performance problems notwithstanding its technical benefits. At less than $40 billion, the completely diluted value of the cryptocurrency now compares to Ethereum’s $260+ billion. Comparatively, Cardano’s total value locked (TVL) is at $440 million whereas Ethereum’s value locked is $50+ billion.
ADA/USD Technical Analysis Points to Critical Support Levels
Currently testing a critical support level at $0.80, ADA used to be resistance throughout its recent upward trend. If this support persists, technical experts estimate ADA might gather by almost 35% to reach $1.14. Ignoring this level, though, might cause a further 20% drop to about $0.65.
Cardano is trying to create a cup-and- handle pattern on the weekly chart; this would finish on a break and close above $1.25. Factors usually favoring buyers: the 20-week exponential moving average (EMA) at $0.82 is sloping upward; the Relative Strength Index (RSI) stays in positive territory.
On-Chain Metrics Show Strong ADA Accumulation
On-chain data points show significant accumulation even with the price fluctuation. Over $110 million worth of ADA tokens have been taken out of exchanges in the previous 48 hours, claims Coinglass. Analyst Ali Martinez also noted that after Trump’s declaration, the biggest ADA whales acquired almost 420 million ADA.
Cardano Price Prediction
Some analysts have quite positive views even with the recent dip. Using the Elliott Wave theory, analyst Gert van Lagen suggested a possible spike to as high as $40 before a fall to roughly $6 on ADA’s monthly chart. Ali Martinez notes, meantime, that ADA might shortly surpass its $1.19 resistance level and possibly quadruple in price.
Growing hope also stems from the possible introduction of Cardano spot exchange-traded funds (ETFs) into the United States. Cardano’s ecosystem is also evolving; daily active addresses have increased by 45% since the start of the year and distributed applications by 60%, mostly in DeFi and NFTs.
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