TLDR
- Trump announced a “US Crypto Strategic Reserve” including Cardano (ADA), triggering an 80% price surge from $0.64 to $1.17 in a matter of hours
- After initial confusion, Trump clarified that Bitcoin and Ethereum would be “at the heart of the Reserve” alongside ADA, XRP, and Solana
- ADA’s trading volume and whale activity spiked significantly, with whales purchasing over 420 million ADA within 24 hours
- The surge led to futures open interest exceeding $1.2 billion, though funding rates remain negative, suggesting aggressive short positions
- Price retraced to the $0.90 support zone, which analysts view as normal consolidation after the sharp move
Cardano (ADA) experienced a remarkable price surge following U.S. President Donald Trump’s announcement of a “US Crypto Strategic Reserve” that will include the cryptocurrency. The announcement, made on March 2, triggered an immediate market reaction, sending ADA’s price soaring by 80% within hours.
The initial announcement came through Trump’s Truth Social platform, where he outlined plans to establish a strategic reserve comprising several cryptocurrencies. The news sparked immediate buying pressure, pushing ADA from $0.64 to the $1.00 barrier in just two hours, marking its first return to this level in over a month.
The momentum continued building throughout the day, with ADA eventually reaching a two-month high of $1.17. This represented an 80% increase from Friday’s low of $0.58, demonstrating the market’s strong reaction to the presidential announcement.
Trump’s initial statement created some confusion in the market by not explicitly mentioning Bitcoin and Ethereum. However, he quickly clarified that both cryptocurrencies would be “the heart of the Reserve,” alongside Cardano, XRP, and Solana.
Market Analysis
Market data showed an immediate response from large investors, with whale accounts accumulating over 420 million ADA tokens within 24 hours of the announcement. This substantial buying activity suggests strong confidence from institutional-level investors in Cardano’s new role.
Trading metrics reflected the surge in market interest, with futures open interest climbing beyond $1.2 billion. However, funding rates maintained a negative bias, indicating that many traders took short positions, potentially anticipating a price correction.
The price movement following the announcement showed clear technical progression. ADA broke through several key resistance levels before encountering selling pressure near the $1.20 mark, leading to a retracement toward the $0.90 support zone.
Technical analysts have noted that this retracement appears normal after such a strong upward movement. Sebastian, a prominent Cardano investor, suggested that consolidation between $0.90 and $1.00 could precede further upward movement.
The surge has particular relevance given ADA’s recent price history. The cryptocurrency had been in a downtrend since December when it reached a three-year high of $1.32. The token had struggled to maintain the $1.00 support level in mid-January before February’s market conditions pushed it below several key support zones.
Transaction volume data from Santiment showed a massive increase in activity following the announcement. The surge in transactions exceeding $1 million indicates substantial institutional participation in the rally.
Market analysts are closely watching the $0.92 level as a key support zone. The price action around this level could determine whether ADA can maintain its newly established trading range or faces further consolidation.
Crypto analyst Ali Martinez pointed to specific technical levels that could signal further upward movement. He suggested that a 12-hour candlestick close above $1.19 could confirm a bullish breakout pattern.
The largest whales on the #Cardano $ADA network have bought 420 million ADA in the past 24 hours! pic.twitter.com/5kunmVgonE
— Ali (@ali_charts) March 3, 2025
The sudden price movement has created an interesting dynamic in the futures market. While open interest has increased substantially, the persistent negative funding rates suggest a complex trading environment with potential for short squeezes.
Trading data shows that after reaching the $1.17 peak on Sunday, ADA experienced a 20% retracement. As of the latest market data, ADA trades at $0.91, representing a 9.9% decrease in the daily timeframe.
