Cardano (ADA) has seen a significant increase of 60% after the announcement of President Donald Trump’s US Crypto Reserve. This surge has pushed ADA above the $1 mark for the first time in over a month.
Before this announcement, Cardano had been experiencing a downtrend for six weeks. The recent price movement has sparked optimism among investors. The MVRV Long/Short Difference indicator shows that long-term holders are making profits, indicating growing confidence in Cardano’s future.
Despite the positive momentum, Cardano’s price is now considered overbought, according to the Relative Strength Index (RSI). This typically suggests a potential price reversal. However, historical trends for ADA indicate that it often continues to rise even when the RSI is overbought. This gives bullish investors hope that the rally may continue.
To keep this upward trend, Cardano must maintain the $1.00 level as support. If it fails to do so, the price could fall back to lower levels, with $0.85 being the next important support zone. If ADA can hold above $1.00, it may continue to rise and potentially reach new highs.
Investors should closely watch the $1.00 level. Its performance will be key in deciding whether Cardano can sustain its rally or if a correction is on the horizon. If the support level holds, it will strengthen positive market sentiment and pave the way for further gains.
