Trump's Crypto Reserve Boosts ADA, Whales Accumulate Despite Market Turmoil

Cardano, the fifth-largest cryptocurrency by market capitalization, has experienced significant volatility in recent days following President Trump's announcement that ADA would be part of the U.S. Strategic Crypto Reserve. The news sparked a wave of buying activity, sending Cardano's price surging by over 80% in a matter of days. However, the excitement was short-lived as ADA's price dropped by more than 35% in the following days, dragged down by a broader market meltdown.

Despite the recent pullback, analysts and investors remain bullish on Cardano's long-term prospects. On-chain data from Santiment reveals that whales accumulated over 420 million ADA following Trump's announcement, indicating confidence in the asset's long-term potential. This surge in whale activity suggests that institutional and high-net-worth investors are positioning themselves ahead of the next market move.

Cardano is currently trading below crucial liquidity around $1 after days of massive volatility, struggling to maintain stability as selling pressure intensifies. Bulls are attempting to reclaim control, but the overall market remains uncertain, with extreme selling pressure keeping ADA from making a decisive move. Despite the recent decline, analysts are still calling for a breakout, though sentiment remains divided. The broader crypto market is in a state of uncertainty, with investors cautious about the next major move. Until Cardano can establish strong support and break through key resistance, traders remain on edge.

However, on-chain data suggests growing optimism among major investors. Following President Trump's announcement of the U.S. Strategic Crypto Reserve, whales accumulated over 420 million ADA. This signals confidence among high-net-worth investors who see long-term value in Cardano despite short-term volatility. Notably, this whale accumulation trend has been ongoing since late 2024, with large holders buying ADA whenever prices drop. This suggests that whales are strategically positioning themselves for future price action, expecting Cardano to perform well in the next market cycle.

The next few weeks will be crucial as market volatility intensifies. If bulls can reclaim key levels, ADA could see a strong recovery. However, failure to hold current support may lead to further downside pressure, aligning with the broader market's struggles. Investors are now watching closely to see whether Cardano can withstand the turbulence and set up for its next major move.

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