"ADA Surges 70% on Trump's Crypto Reserve Announcement, Bulls Eye Record Highs"

Cardano (ADA) experienced a remarkable surge of over 70% on Sunday, following the announcement by U.S. President Donald Trump of a U.S. crypto reserve that includes Cardano, Solana, XRP, Bitcoin, Ethereum, and other major cryptocurrencies. The Cardano price soared from around $0.67 to approximately $1.12 by the end of Sunday, but has since retreated to around $0.86 on Monday.

The reversal lower comes as the broader crypto market faces risk-off flows, fueled by concerns over Trump's trade wars and the potential impact on the U.S. economy. Unfavorable macro conditions suggest that two-way volatility will remain high, with important U.S. jobs data on the horizon later in the week. However, Sunday's crypto reserve announcement and subsequent market rally could serve as a significant warning shot for the bears.

Looking ahead, the Trump administration is set to host an event at the White House on Friday, where more details on their crypto investment plans will be revealed. If the U.S. government steps into the Cardano spot market as a major buyer, it could trigger a rush by retail and institutional investors alike to secure their positions. Additionally, the potential approval of Cardano ETFs in the USA could further boost ADA's price.

Chart analysis indicates that momentum has shifted in favor of the bulls. ADA has seen two major bounces from its 200-day moving average (DMA) over the past month, demonstrating the resilience of the current bull market. Despite Monday's pullback, ADA continues to hold above its 21 and 50 DMAs, suggesting near-term momentum remains with the bulls.

In the short term, the direction of the Cardano price will depend on how the Friday crypto reserve announcement unfolds and how macro conditions evolve this week. However, in the longer term, risks are strongly tilted to the upside, with ADA likely to surge beyond its recent highs around $1.31 and on towards its record highs above $3.11 soon. This could result in gains of nearly 4x for 2025, although investors must be prepared for significant swings to reap the rewards.

Proponents of ADA argue that its highly scalable blockchain, paired with a rigorous academic approach to development, positions it for widespread adoption and potentially