#USCryptoReserve Cardano (ADA) experienced a significant increase of 60% following President Donald Trump's announcement about the US Crypto Reserve. This surge pushed ADA above the $1 mark for the first time in a month.
Despite the positive momentum, the price of Cardano is now considered overbought, according to the Relative Strength Index (RSI). This typically indicates a potential price reversal. However, historical trends for ADA show that it often continues to rise even when the RSI is overbought. This gives optimistic investors hope for a continued rally.
To maintain this upward trend, Cardano must hold the $1.00 level as support. If it fails to do so, the price may return to lower levels, with $0.85 becoming the next important support zone. If ADA can stay above $1.00, it may continue to increase and potentially reach new highs.
Investors should closely monitor the $1.00 level. Its performance will be key in determining whether Cardano can sustain its growth or if a correction is already on the horizon. If the support level holds, it will boost positive market sentiment and pave the way for further growth.