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As shown on the ADA/USD chart, the price of this cryptocurrency asset soared from $0.66 to $1.15 in just a few hours, marking a new peak for 2025.
Why Is Cardano (ADA) Rising?
The main driver behind Cardano's (ADA) price surge was US President Donald Trump’s decision to establish a Strategic Cryptocurrency Reserve.
In a 2 March post on the Truth social media platform, the US president announced that he had instructed the Presidential Task Force on Digital Assets to include XRP, Solana, and Cardano in the reserve, emphasising that Bitcoin (BTC) and Ethereum (ETH) would be the "heart of the reserve."
Unsurprisingly, the price of ADA and other mentioned crypto assets received a strong bullish boost.
Technical Analysis of the ADA/USD Chart
Since December 2024, when the initial optimism following Trump’s victory seemed to fade, ADA/USD price movements have formed a descending channel (marked in red), with the following developments:
→ The news of the US cryptocurrency reserve pushed the price beyond the upper boundary of the channel.
→ However, resistance at the $1.15 level sent the price back into the descending channel.
If market sentiment has genuinely turned bullish, ADA is unlikely to drop below the former resistance level of around $0.83, which is roughly 50% of the B→A rally—meaning today’s pullback from peak A would appear to be a correction after a sharp surge.
Otherwise, ADA may consolidate within the descending channel and continue a downward trajectory.
For further insights on ADA price forecasts, visit: Analytical ADA Price Forecasts: What Will It Be Worth in 2024–2050?
FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.
*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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