Cardano (ADA) Price Surge: What’s Next After Trump’s Crypto Reserve Hint?

Cardano (ADA) Price Surge: What’s Next After Trump’s Crypto Reserve Hint?

The cryptocurrency world thrives on speculation, and sometimes, a single tweet can send shockwaves through the market. Case in point: Donald Trump’s recent tweet hinting that Cardano (ADA) might be included in the U.S. crypto reserve. The result? ADA’s price skyrocketed by over 80%, leaving traders scrambling to capitalize on the sudden surge. But what does this mean for the future of ADA? Let’s break it down.

Cardano's Sudden Price Explosion: What Happened?

Trump’s tweet acted as the spark that ignited ADA’s meteoric rise. The market reaction was swift and expected—an 80% surge in price, bringing ADA to a crucial technical level: the 800-day Exponential Moving Average (EMA), a well-known resistance point.

This price action also served another function: it prevented ADA from forming a lower low. The wick from the February 3rd sell-off was completely filled, indicating strong buying pressure. However, despite this bullish move, ADA narrowly missed hitting its previous high of $1.20, signaling that resistance remains formidable.

Technical Analysis: Will ADA Hold or Retrace?

Short-term traders are now eyeing the 50-day EMA as a potential retracement zone. This moving average aligns closely with a key support level at $0.81, making it a crucial area to watch. Additionally, today’s trading session has formed a red vector candle, which may need to be ‘retrieved’ by the market before another bullish move.

Heatmap Insights: Where’s the Liquidity?

The overnight sell-off has created a large liquidity zone, which the price may revisit. Whether ADA can maintain its current levels will depend largely on how traders react to weekend news and whether the market fully digests Trump’s statement.

4-Hour Chart: Can ADA Maintain Support?

Zooming into the 4-hour chart, a W-pattern emerges, albeit not in the cleanest form. If ADA corrects to cool off indicators, the neckline of this pattern—coinciding with multiple EMAs—could act as a strong support level.

However, a deeper retracement to the 200-day EMA remains on the table. The green vector candle in this range hasn’t been fully absorbed, and liquidation levels suggest significant open positions that could influence short-term price movement.

Momentum Indicators: Signs of a Cool-Off?

• Relative Strength Index (RSI): Overbought conditions suggest that a cooldown may be imminent.
• Moving Average Convergence Divergence (MACD): The histogram signals weakening momentum, hinting at a possible short-term correction.

What’s Next for Cardano?

While ADA’s price action remains bullish, traders should prepare for volatility. If the 50-day EMA holds, ADA could make another attempt at $1.20. However, failure to hold support may lead to a deeper correction toward the 200-day EMA.

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Final Thoughts

Cardano’s latest price rally has sparked excitement, but caution is necessary. Technical indicators suggest a potential pullback, but the overall trend remains bullish. Keep an eye on key support and resistance levels to navigate ADA’s next move successfully.

Disclaimer: This article is for informational and entertainment purposes only and does not constitute financial advice. Always do your research before making investment decisions.