Cardano Surges 60% After Trump's Crypto Reserve Announcement

The announcement of President Donald Trump's Crypto Reserve , which includes Cardano among its assets, served as the primary catalyst for the dramatic price movement. The token has now climbed above the $1 threshold for the first time in more than a month, marking a significant psychological barrier for traders.

Long-term holders of the cryptocurrency are seeing substantial improvements in their positions. The MVRV Long/Short Difference indicator shows a marked increase, revealing that long-term investors' profit margins have expanded considerably. These investors typically provide price stability for cryptocurrencies. When they profit while continuing to hold rather than sell, they prevent downward price pressure.

This holding pattern aligns perfectly with the recent price surge. The increased profits among long-term holders indicate strong confidence in Cardano's future prospects. Many market analysts suggest this rally could represent more than a temporary price swing.

"This could be the beginning of a more sustained uptrend," said one market analyst, pointing to the strength of underlying metrics.

Cardano's Relative Strength Index has entered overbought territory, typically considered a warning sign of potential price reversal. Historical data for ADA, however, reveals a different pattern. Previous instances when the RSI reached overbought levels often preceded continued upward momentum rather than reversals.

Technical analysts note this unusual pattern could indicate further price increases despite the overbought conditions. The current momentum, if maintained, might drive ADA to even higher levels in the coming weeks.

At press time, Cardano trades at $1.06, representing a 60% increase. The recovery comes after the cryptocurrency struggled below the $1 mark for six consecutive weeks. Market participants are closely watching this level as a key indicator of future performance.

For ADA to maintain its bullish trajectory, holding the $1.00 level as support is crucial. Failure to maintain this support could trigger a retreat toward the $0.85 level, potentially invalidating the current positive outlook and delaying recovery efforts. Conversely, establishing solid support at current levels would likely strengthen the foundation for additional price increases.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.