Cardano Surges 60% After US Crypto Reserve Inclusion

In Brief

Cardano (ADA) surged 60%, breaking above $1.06, after Trump’s Crypto Reserve announcement.

Long-term holders (LTHs) are holding ADA, reinforcing strong investor confidence.

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Cardano (ADA) has staged a massive comeback, rallying 60% after being named in Donald Trump’s proposed US Crypto Reserve. The announcement triggered a wave of buying pressure, helping ADA reclaim the $1 mark for the first time in six weeks.

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Key Market Signals Show Strong Momentum

The MVRV Long/Short Difference indicator suggests long-term holders (LTHs) are seeing higher profits and are choosing to hold rather than sell. This behavior reduces selling pressure and strengthens ADA’s long-term bullish momentum.

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Meanwhile, the Relative Strength Index (RSI) has entered the overbought zone, traditionally signaling a potential correction. However, historical ADA price patterns suggest that when RSI enters overbought territory, ADA often continues its upward trend instead of reversing.

Next Levels to Watch

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Currently, ADA is trading at $1.06, with the key $1.00 support level being crucial for maintaining its rally. If ADA holds above this psychological threshold, further upside could push it toward new highs. However, a failure to sustain this level could result in a pullback toward $0.85, weakening its bullish outlook.

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