NOIDA (CoinChapter.com) — Cardano (ADA) rebounded sharply following its inclusion in the newly announced U.S. Crypto Strategic Reserve. President Donald Trump unveiled the plan on Truth Social, naming Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) as the key assets in the initiative.
The announcement triggered an immediate market-wide rally, helping ADA surge over 75% within hours.
The broader market struggled amid recent global economic concerns and regulatory uncertainty. Bitcoin, which had fallen below $85,000 last week, rebounded to $94,164, marking an 11% surge. Ethereum followed with a 13% increase, rising to $2,516. XRP and Solana also recorded double-digit gains.
However, Cardano’s 60% spike, reaching $1.01 from $0.65, stood out as the most dramatic price movement among major cryptocurrencies. Market analysts attribute the surge to ADA’s prior undervaluation and investor enthusiasm over its unexpected inclusion in the reserve.
Trump’s Crypto Reserve: A Game-Changer or a Gimmick?
Trump’s announcement of the U.S. Crypto Strategic Reserve is a landmark moment for digital assets. The plan is reportedly linked to an executive order signed in Jan. 2025 to reinforce the country’s leadership in blockchain technology.
The reserve intends to create a strategic financial buffer by officially recognizing and holding major cryptocurrencies. However, details remain unclear on whether new purchases will be made or existing seized assets will be repurposed.
The impact of the reserve announcement sharply contrasts with Trump’s recent tariff proposal, which sent traditional markets into a tailspin. While the tariff plan rattled global equities and led to a temporary Bitcoin sell-off, the crypto reserve news fueled a broad recovery.
ADA’s inclusion has sparked discussions on why it was selected over other high-ranking tokens. Some argue that Cardano’s research-driven development and proof-of-stake model align with regulatory goals, while skeptics question whether its previous underperformance made it an easy candidate for speculation-driven rallies.
Despite the excitement, some traders remained cautious, noting that policy shifts and unclear reserve mechanisms could impact sustainability.
The market now awaits further clarification from the Trump administration on how the reserve will operate, particularly regarding asset custody and long-term intentions. Meanwhile, Cardano holders continue to ride the wave, anticipating that this newfound recognition will lead to increased institutional adoption and regulatory clarity in the months ahead.
ADA Price Forms Bullish Pattern
The ADA USD pair has formed a bullish technical pattern called the Bull Flag. The pattern on Cardano’s (ADA) chart signals a continuation of its strong upward trend following the U.S. Crypto Strategic Reserve announcement.
A bull flag forms after a sharp price rally (flagpole), followed by a consolidation phase (flag) that slightly trends downward or moves sideways. This structure suggests that buyers are regaining strength before another potential breakout.
ADA’s price surged from under $0.30 to over $1, creating the flagpole. The consolidation phase between $0.60 and $1 formed the flag. A confirmed breakout above the $1.3 resistance level suggests a continuation of the uptrend.
To calculate the bull flag’s price target, traders measure the flagpole’s height and project it upward from the breakout point. Adding this to the breakout level of $1 gives a potential price target near $4.37, a spike of over 334%.
Meanwhile, following ADA’s recent price surge, the profit booking crowd has moved in, forcing the Cardano token price to pare gains.
Cardano’s price rallied before facing resistance near $1.20, aligning with the 0.618 Fibonacci retracement level. The rejection triggered a pullback, with ADA now hovering near $0.95. Despite the drop, the price remains above key exponential moving averages (EMAs), with support near $0.9.
The RSI spiked into overbought territory before cooling off, signaling potential consolidation. A bounce from $0.90 support could renew bullish momentum, targeting the $1.40 resistance zone. However, a break below the $0.90-$0.87 region could shift control back to bears, exposing ADA to further downside risks.
