- Cardano rose to the announcement of Trump of an American crypto strategic reserve, which caused speculation.
- Traders wonder if this momentum is sustainable or a fleeting movement.
Cardano [ADA] has emerged as one of the biggest winners after the announcement of US President Donald Trump of a National Crypto Strategic Reserve.
The news sent shock waves through the market, where speculation about the altcoins was recorded such as Cardano, XRP and Solana [SOL] – And Ada rose to around 60%in response.
Trade volume peaked when investors piled up, so that the hope for a persistent outbreak was fueled.
But volatility in Crypto is a completely different ball game – so is this the start of a larger move for Cardano, or just another volatile rally?
Cardano: Trump’s Crypto Reserve Announcement Sparks Market Frenzy
President Donald Trump came well with his announcement of a US crypto strategic reserve, aimed at strengthening the industry after what he called ‘corrupt attacks’ by the Biden administration.
In his first statement, Trump confirmed that XRP, Solana and Cardano would be included in the reserve, but Bitcoin [BTC] and Ethereum [ETH] were remarkably absent.
The omission sent waves of speculation via the market before Trump quickly succeeded With a clarification,
“And, of course, BTC and ETH, as other valuable cryptocurrencies, will be the heart of the reserve. I also like Bitcoin and Ethereum! “
The move has fueled an intense debate that assets would benefit the most, but with his powerful Golf the first beneficiary seems to be Ada.
Ada Skyrockets
Source: TradingView
After President Trump’s announcement of a US Crypto Strategic Reserve, Cardano experienced a competitive wave and climbing around 60% as traders speculated about potential inclusion.
The first graph shows ADA/USD on the time frame per hour, where a sudden price peak Ada took past the most important advancing averages, which reflects the influx of buyers.
The RSI briefly entered overbought territory above 73, which indicates a strong momentum before a withdrawal. The MacD histogram became positive and further strengthened the bullish sentiment.
Source: Santiment
Santiment Data emphasized an enormous increase in transaction volume and whale activity, especially after the announcement.
The price of ADA gathered in addition to an increase in whale chanties of more than $ 1 million, which indicates institutional or high net value interest rate.
After peak, however, the sales pressure emerged, which suggests that traders lock profit in the short term.
Market reaction and trade behavior after the announcement
Source: Coinglass
After the announcement, the open interest of ADA increased after $ 1.2 billion, indicating a rapid inflow of speculative capital. This coincided with a competitive price rally to $ 1.20, which strengthened a strong bullish sentiment.
Source: Coinglass
However, the data from the financing percentage indicates a continuing negative distortion, which suggests that short traders have built aggressive positions, probably anticipating a correction.
This imbalance indicates a potential short squeeze as a bullish momentum.
The combination presents a volatile setup, in which traders either double on shorts or are confronted with liquidation if buying pressure maintains.
Price promotion in the short term will depend on whether the inflow of leverage supports further profits or causes a reversal due to overload.
Can Cardano support the momentum?
The short -term process of ADA depends on whether his parabolic rally finds persistent purchase aid or is confronted with profitable pressure.
A continuation could cause a further short squeeze, which pushes ADA past $ 1.20, while a retracement can test the liquidity around $ 0.90.
The market reaction to the formal recognition of ADA in Trump’s strategy could strengthen its role in the developing crypto-political landscape, which may assume institutional interest.
If this story strengthens, Ada can settle as a strategically active that goes beyond speculative trade.
Wider Market Impact remains a key factor-de increase in ADA in other altcoins, in particular smart contract platforms and politically aligned tokens, strengthening sector-wide volatility and creating opportunities for traders who navigate through this changing landscape.
