Cardano, one of the most promising blockchains today, has witnessed a significant value increase of up to 75% after being mentioned in President Donald Trump's new strategic cryptocurrency reserve plan. On March 2, when this announcement was made, the value of ADA surged from a low of $0.6461 to $1.13, according to statistics from crypto.news.
Price Movement and Trading Volume
In the 24 hours following the announcement, Cardano's trading volume surged significantly, recording an increase of 1,450%, reaching an average of $9.7 billion. This increase not only boosted Cardano's market capitalization to $36 billion but also propelled the entire cryptocurrency market, with the total market value improving by an additional $300 billion.
Cardano has surpassed the important resistance zone of $0.82, marking the end of an extended consolidation phase. After peaking at $1.20, the price of ADA has slightly adjusted down to $1.00 and is showing signs of stabilization. Strong buying demand has been identified through a significant increase in trading volume during this period.
Technical Analysis
The Relative Strength Index (RSI) quickly reached an overbought level above 75, before slightly adjusting down to 62. This indicates that Cardano still maintains an upward price trend, although it may experience a consolidation phase in the short term. Other technical indicators also support this upward trend; the Exponential Moving Average (EMA) currently stands at $0.8255, and the Simple Moving Average (SMA) at $0.9350 both provide buy signals.
If Cardano can maintain a price above $1.00, the next resistance point to watch will be around $1.20. If the upward momentum continues, the price of ADA could reach $1.50. Conversely, the nearest support level is around $0.82, while $0.80 is seen as an important psychological level for investors.
Future Prospects of Cardano
An important factor that could influence Cardano's prospects in the near future is whether the U.S. Securities and Exchange Commission (SEC) may approve Grayscale's spot Cardano exchange-traded fund (ETF). If approved, this would be the first ETF in the U.S. dedicated to ADA. This not only increases Cardano's credibility in the eyes of investors but also opens up opportunities for significant capital influx from traditional investors.
At the same time, Cardano is also undertaking significant technological developments and updates to enhance the performance and scalability of the network. The Cardano ecosystem, with its ability to deploy smart contracts and decentralized applications (dApps), is becoming increasingly robust, generating confidence and excitement among investors and developers.
Conclusion
With recent positive developments and support from political announcements, Cardano is on a strong growth trajectory. Investing in Cardano is now not only a financial decision but also part of the ongoing technological revolution in the cryptocurrency space. The combination of technical factors, development prospects, and investor interest could make Cardano one of the most watched cryptocurrencies in the future.