TL;DR

• Cardano’s native token is riding the Trump-induced wave like no other, with a massive price surge that pushed it from $0.65 to almost $1 within minutes.
• This helped it become the eighth-largest cryptocurrency by market cap, surpassing the OG meme coin.

Cardano’s native token took the recent market-wide crash worse than many tokens, as its price dumped from over $0.82 to under $0.6, which meant a 30% decline within a week or so.

It defended the $0.6 support and jumped to $0.65 during the weekend as the entire market saw a relief rally.

However, the landscape changed about an hour ago when US President Trump confirmed the much-anticipated news about a crypto reserve in the States. Moreover, he named three cryptocurrencies that will be included in it – XRP, SOL, and ADA.

Perhaps this comes as no surprise, given that all the entities behind the tokens are based in the US. SOL and XRP shot up impressively by about 15-20% each, but ADA stole the show with a massive 55% surge that pushed it to just inches away from the coveted $1 level.

This became its highest price level in over a month, as it spent the entire February below that line. Additionally, it helped ADA rise in the top 10 rankings, as the asset is now the eighth-largest, with a market cap of over $35 billion.

Cardano’s token surpassed the largest and oldest meme coin – Dogecoin, whose market cap remains below $32.5 billion.

US President Donald Trump continues to impact the cryptocurrency markets in a spectacular fashion, and the past hour proved the narrative once again, this time in a positive manner.

Although many digital assets headed north after his latest interaction in his own social media, the trio that he named literally exploded.

His post relates to the crypto reserve promises that he made during his presidential campaign, which was initially believed to consist only of bitcoin. However, after lobbying from numerous US-based crypto companies, such as Ripple and its CEO, Brad Garlinghouse, rumors emerged that he might include such assets as well.

His executive order on the matter didn’t shed much light when it was first signed, but his post from less than an hour ago did. It namedrops SOL, ADA, and XRP, all of which are from companies that are based in the States.

Somewhat expected, the prices of all three skyrocketed immediately. XRP went up by over 20% at one point, from under $2.3 to over $2.6. Solana gained 15%, shooting past $160 for the first time since last week’s crash.

Cardano’s native token took the main stage with a 32% surge that pushed it to a multi-day peak of its own of over $0.8.

Other crypto assets, including BTC, also reacted well to Trump’s statement. Bitcoin jumped past $88,000 for the first time since Wednesday but has lost about a grand since then.

Bitcoin’s price has been dropping rapidly over the past few days, making investors worried that the bull market is over.

However, there is still hope left, as the market is getting supported in a key area.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

On the daily chart, the asset has been on a steep decline since last week and is yet to recover. Yet, the 200-day moving average, located near the $80K support level, is currently supporting the cryptocurrency, preventing a further downward move.

As things stand, a rebound to the $90K level seems likely. On the other hand, if these levels are broken to the downside, things could get even worse, and a drop to the $74K area would be highly probable.

The 4-Hour Chart

The 4-hour chart shows a more positive picture of the recent price action, as the market has bounced decisively from the $80K level. The RSI’s bullish divergence also showed the probability of such a move beforehand.

Yet, as long as the price has not risen back above the $87K high, the trend cannot be considered bullish again, as the market needs to make higher highs and lows once again.

Sentiment Analysis

By Edris Derakhshi (TradingRage)

Funding Rates

Analyzing the futures market sentiment has always provided helpful insights over the past few years, and one of the most helpful metrics is the funding rates. This metric demonstrates whether the buyers or the sellers are in control of the futures market.

As the chart depicts, the funding rates metric has just printed the most negative reading over the past few days, indicating that the sellers are aggressively executing leveraged shorts.

While this might seem worrying, it could also be the beginning of the end for this downtrend, as a small bullish pullback could lead to a short-liquidation cascade that pushes the price back higher again. As a result, the next few days are very important for BTC’s mid- to long-term future.