ADA Surges 60% on Trump's Crypto Reserve Announcement
1min read Cardano's [ADA] recent 60% surge has sparked speculation about a potential larger move, following U.S. President Donald Trump's announcement of a national crypto strategic reserve. The news sent shockwaves through the market, with ADA emerging as one of the biggest winners alongside XRP and Solana [SOL].
Trump's announcement initially omitted Bitcoin [BTC] and Ethereum [ETH], fueling market speculation. However, he later clarified that these cryptocurrencies would be included in the reserve. The move has ignited intense debate over which assets would benefit most, but ADA's mighty surge suggests it is an early beneficiary.
Following the announcement, Cardano experienced a sharp surge, climbing approximately 60% as traders speculated on its potential inclusion. The price spike took ADA past key moving averages, reflecting the influx of buyers. The RSI briefly entered overbought territory, indicating strong momentum before a pullback. The MACD histogram turned positive, further reinforcing the bullish sentiment.
Santiment data highlighted a massive increase in transaction volume and whale activity, particularly after the announcement. ADA's price rallied alongside a surge in whale transactions exceeding $1 million, signaling institutional or high-net-worth interest. However, after peaking, selling pressure emerged, suggesting short-term traders locking in profits.
Following the announcement, ADA's futures open interest surged past $1.2 billion, signaling a rapid influx of speculative capital. This coincided with a sharp price rally toward $1.20, reinforcing a strong bullish sentiment. However, the Funding Rate data indicates a persistent negative bias, suggesting that short traders have aggressively built positions, likely anticipating a correction. This imbalance hints at a potential short squeeze if bullish momentum persists.
ADA's short-term trajectory hinges on whether its parabolic rally finds sustained buying support or faces profit-taking pressure. A continuation could trigger a further short squeeze, pushing ADA past $1.20, while a retracement may test liquidity around $0.90. The market's reaction to ADA's formal recognition in Trump's strategy could solidify its role in the evolving crypto-political landscape, potentially attracting institutional interest. If this narrative strengthens, ADA may establish itself as a strategic asset beyond speculative trading. Broader market impact remains a key factor - ADA's surge could spill over 