ADA Closes Above Key Support as Crypto Reserve Announcement Triggers Rally

Trump’s inclusion of the token in his proposed list for a strategic crypto reserve seems to have triggered a rally.

Trading volumes have retreated a bit in the past day but still stand at a high level compared to historical figures at $4.9 billion.

As a result of Sunday’s uptick, Cardano has now gone up by 42% in the past 7 days while the token has booked yearly gains of 13%.

Cardano is the only cryptocurrency in the top 10 apart from XRP whose yearly performance is in positive territory. In contrast, other popular smart contract networks like Solana (SOL) and Ethereum (ETH) have seen the value of their native assets decline by 25.3% and 34.5% respectively since 2025 started.

Is ADA Suitable for a Strategic Reserve?

Investors and analysts were surprised by Trump’s decision to include ADA as one of the candidates to be included in the country’s digital asset stockpile.

The Cardano ecosystem lags behind its peers in terms of efficiency and ecosystem growth. The Cardano network can process up to 1,000 transactions per second, which is a tiny fraction of Solana’s theoretical capacity of 65,000 TPS.

Meanwhile, the Solana ecosystem boasts a total value locked of $7.3 billion and a stablecoin balance of $11.4 billion while it has accommodated widely successful decentralized apps (dApps) like Jupiter, Jito, and Raydium.

Comparatively, the Cardano ecosystem’s TVL currently stands at $415 million according to data from DeFi Llama while its stablecoin balance is much lower at $21.9 million.

The daily chart shows that ADA dropped below a former resistance area that has now turned into support at $0.83 during yesterday’s session. However, investors poured significant money into the asset during the American session and managed to push the price above this threshold later in the day.

Cardano Struggles to Move Above $1 Today

Today’s session has been the opposite, as bears took over the price action during the first part of the American session and have pushed the price below the psychological $1 resistance again.

Momentum indicators are still in positive territory as the Relative Strength Index (RSI) stands at 58 and around 30% above the signal line while the MACD’s histogram shows growing positive momentum.

The $1 level is the key resistance to overcome in the next few sessions for this rally to continue. Meanwhile, the $0.83 continues to be the most relevant support to watch moving forward.

Hourly Chart Shows Bullish Structure

The hourly chart shows that ADA is on an uptrend, as the asset has made three consecutive higher highs and higher lows since yesterday. The key area of support for scalpers would be the $0.930 level, as a break below would invalidate this bullish formation.

Momentum indicators briefly moved to negative territory but the MACD’s histogram has already posted its first light red bar, meaning that the initial decline may have hit a bottom.

A long position at this point offers an attractive risk-reward ratio of 1.8 if the stop price is set right below the most recent support area and the target slightly above the Asian session’s high.

The Relative Strength Index (RSI) has not yet sent a buy signal, meaning that the jury is still out on this one. The next couple of hours should provide confirmation of the trend’s direction for what remains of the session.

Another leg up would dramatically raise the odds that ADA could surge to its Sunday highs before the end of the day.