Cardano (ADA) Price Prediction: 80% Pump Following US Announcement of "Crypto Strategic Reserve"

On Sunday, Cardano (ADA) saw a massive 80% pump following the US President's announcement of a “Crypto Strategic Reserve” that will include ADA.

U.S. President Donald Trump announced the establishment of a “US Crypto Reserve” comprised of Cardano (ADA), XRP, and Solana (SOL), with Bitcoin (BTC) and Ethereum (ETH) at the heart of the strategic reserve, on his social media platform, Truth Social, on March 2.

The president stated that the strategic reserve would “elevate the critical industry after years of corrupt attacks by the Biden Administration.” The announcement sent many cryptocurrencies into an end-of-week pump to reclaim some recently lost support levels.

Don't Miss: Best Crypto Scanners For 2023

Cardano had been in a downtrend since December when it hit 3-year highs of $1.32 but failed to hold the $1 support in mid-January. The February market retraces sent the cryptocurrency’s price below several key support zones, with the token seen trading in the $0.60-$0.80 price range.

Following Trump’s announcement, Cardano rose 60% in two hours, recovering from $0.64 to the $1 barrier for the first time in over a month. ADA continued its surge in the following hours, recovering over 80% from Friday’s lows of $0.58.

On Sunday, ADA hit two-month highs of $1.17 before retracing over 20% to the key $0.90 support zone. Cardano investor Sebastian noted that the retest of the $0.92 level was “perfectly normal after such an insane move.”

The investor suggested it could consolidate within the $0.90-$1.00 range for a few days before resuming its ascending trajectory.

“If it breaks above the December high, we might see a new ATH soon,” the investor added.

The investor noted that a retest of the $0.92 level was “perfectly normal after such an insane move.” He suggested it could consolidate within the $0.90-$1.00 range for a few days before resuming its ascending trajectory.

“If it breaks above the December high, we might see a new ATH soon,” the investor added.

ADA Could See 125% Rally From Current Levels

Crypto analyst Ali Martinez stated that Cardano “could be poised for a rally to $2.20.” According to the post, investors should “watch for a 12-hour candlestick close above $1.19” to confirm the bullish breakout and target an 84% jump from the breakout level.

“Massive buying activity from Cardano whales could be a key factor in the token’s recovery,” Martinez added.

The analyst noted that Cardano whales bought over 420 million ADA in the past 24 hours, which could signal strong sentiment from large-scale investors on the cryptocurrency.

Meanwhile, Sjuul from AltCryptoGems stated that Cardano’s chart displays a “big power of 3 in the making.” This pattern divides the price cycle into three phases: accumulation, manipulation, and distribution.

The first phase consists of a consolidation near the recent high after a strong price performance. The second phase sees a token’s price falling below the accumulation phase’s support level and trades within a range below the recently lost zone.

The third phase sees a strong price breakout, with momentum building and participants entering the market. According to Sjuul, “the chart never lies,” and Cardano entered the third phase after Sunday’s pump, suggesting that ADA could retest December highs soon.

As of writing, ADA trades at $0.91, down 9.9% in the 24-hour period.