Key Takeaways
- Cardano (ADA) has been up by an impressive 60% from its recent monthly lows.
- This price increase comes amid reports of an upcoming White House crypto summit on 7 March.
- Donald Trump, the US president, has also announced the addition of Cardano and other cryptocurrencies to an incoming national crypto stockpile.
- Cardano could be set for a rally towards the $3 mark, as long as the $1.2 price resistance breaks.
Cardano has been on an impressive run lately, after rallying by more than 60% from its recent $0.57 lows.
This rally comes amid anticipation for the first-ever White House crypto summit and has affected most of the altcoin market.
This altcoin, which is one of the top ten, has rebounded by an impressive 30% from its recent low of $0.75 on 4 March to an intra-day high of $0.9792.
ADA is now trading at around $0.94 by the time of writing, indicating a 41% increase in the past week.
Let’s see what exactly has been driving this rapid jump in Cardano’s price and the key factors behind this bullish momentum.
White House Crypto Summit Sparks Market Optimism
The upcoming White House Crypto Summit, which is scheduled for 7 March, has been the source of major excitement across several cryptos in the industry.
It appears that Cardano and a few others are major beneficiaries of this enthusiasm.
Said summit is expected to be hosted by US president Donald Trump, who continues to take more and more pro-crypto stances by the day.
The event is expected to gather key industry players from several sectors to discuss important topics like regulatory policies, stablecoin oversight, a possible national reserve and the role of crypto in U.S. finance
Some notable attendees may include Cardano founder Charles Hoskinson, alongside a few other members of the recently created Working Group on Digital Assets.
The summit will be chaired by AI and crypto czar David Sacks and will be administered by the executive director of the Working Group, Bo Hines.
The Strategic Bitcoin Reserve Hype
Another factor adding to the excitement is how Trump recently announced a U.S. Strategic Crypto Reserve.
This federal crypto stockpile is expected to contain more cryptocurrencies than Bitcoin, including Ethereum, Solana, XRP and Cardano.
The acknowledgement of all of these cryptocurrencies has fueled speculation about a possible shift in the US’ pro-crypto framework.
Markets often rally when they expect favorable policies, and the recent weekly surge in Cardano’s price could be a reflection of traders positioning themselves for the possible announcement that “might” solidify Cardano’s position as a mainstream digital asset.
While the details of this reserve and summit are scarce, the events of the next few days are expected to provide much-needed regulatory clarity for the setcor as a whole.
Cardano’s DeFi Ecosystem Gains Strength
More developments have unfolded for Cardano lately. More than the summit and the crypto stockpile, Cardano’s defi ecosystem is experiencing a period of massive growth so far.
According to DefiLlama, the recovery from the 28 February market crash has caused a jump in Cardano’s TVL.
This metric has jumped by around 52% over the last week, from a low of around $270 million to more than $400 million at the time of writing.
Some of the protocols leading the charge according to DefiLlama include Indigo on the Synthetics protocol, which is up by around 30% in TVL.
Another is the MinSwap DEX and Liqwid protocol, both of which are up by around 30% as well.
Data from Coinglass also shows that the open interest on Cardano has been on the rise lately and is nearing the $1 billion mark as of writing on 6 March.
On the other hand, the weighted funding rates continue to remain negative, which indicates that the bears are still present.
Technical Indicators Support a Bullish Outlook
The charts are also showing encouraging signs of bullish action.
For example, the chart below shows that Cardano is attempting a breakout from the bear flag.
The bears continue to drag prices back into the formation, as illustrated. However, the signs indicate that the bulls are strong and active.
The RSI shows a reading of 56, indicating that the bulls have the upper hand and only need to confirm a break above this formation somewhere around $0.80.
So far, the major resistance for Cardano sits somewhere around $1.20, and a break above could trigger a sharper rally for the cryptocurrency.
If the bulls put energy into this break, nothing mush stops Cardano from racing towards its all-time high around the $3 mark, in a move that would easily make it one of the best performing cryptocurrencies on the market.
On the other hand, a break below the crucial $0.8 price level could invalidate this outlook and lead to more consolidation or even a dump.
What’s Next for Cardano?
The ongoing price surge for Cardano shows that investors are being bullish and cautious at the same time.
The upcoming White House Crypto Summit should provide some clarity as to the cryptocurrency’s classification in the US.
Cardano’s inclusion in the proposed US strategic reserve could also add an extra layer of credibility to the cryptocurrency, at least as far as investors are concerned.
The key level(s) to watch include the $1.00-$1.20 resistance zone, and a strong breakout above this range could be just what Cardano needs to target new multi-month highs.
Whether ADA can sustain this momentum remains to be seen. However, investors must keep an eye on the aforementioned resistance zones.
