Trump’s Crypto Reserve Sends Cardano Soaring 70% – Is ADA Heading for $100?

Trump’s Crypto Reserve Sends Cardano Soaring 70% – Is ADA Heading for $100? / Source: Cryptonews

Cardano (ADA) saw a massive more than 70% surge on Sunday in wake of US President Donald Trump announcing that he has ordered the creation of a US crypto reserve that would include Cardano, alongside Solana, XRP, Bitcoin, Ethereum and other major cryptos.

The Cardano price flew from around $0.67 to end Sunday near $1.12, but has since reversed sharply lower to around $0.86 on Monday.

The reversal lower again comes as the broader crypto market succumbs to risk-off flows amid rising fears that Trump’s trade wars and DOGE austerity will cause a US recession.

Unfavorable macro conditions suggest that two-way volatility is set to remain high, with important US jobs data coming up later in the week.

However, Sunday’s crypto reserve announcement and subsequent market rally could have marked a major “shot across the bow” against the ADA bears.

Where Next for the Cardano Price?

Sunday’s rally is a major lesson for the ADA bears – short Cardano at your peril.

The Trump administration will be holding some sort of event in the White House on Friday where more details on crypto investment plans will be revealed.

If the US government is about to step into the Cardano spot market as a major buyer, all bets are off about how high and how fast the crypto could fly.

That’s not only because the US government could add massive buy pressure to the market by themselves, but that they could also trigger a rush by retail investors and institutional investors alike to secure their bags.

And with Cardano ETFs likely to soon gain approval in the USA, that would mark a further stamp of approval for ADA from the government.

So while the broader crypto market’s current swoon could go from bad to worse as macro fears ramp up, ADA faces significant upside price risks this year as the US crypto reserve is established.

Another major narrative for the crypto could be its potential selection by the US treasury as the blockchain to run payments on top of.

It would make sense that if the US government is to run payments on a blockchain, this blockchain would also be represented in its crypto reserve.

Chart analysis also suggests that momentum has swung massively in favor of the bulls.

ADA has now seen two major bounces from its 200DMA over the past month, a sign that the current bull market has a lot of resilience.

And, despite its pullback on Monday, ADA continues to hold above its 21 and 50DMAs, suggesting near-term momentum remains with the bulls.

Things could go either way in the short-term depending on how the Friday crypto reserve announcement goes and how macro goes this week.

But, in the longer term, risks are strongly titled to the upside, with ADA likely to surge beyond its recent highs around $1.31 and on towards its record highs above $3.11 soon.

That means the crypto could have gains of nearly as much as 4x in the bag for 2025, though only those able to hold through big swings will reap the rewards.

Can ADA 100x to $100?

Proponents of ADA reaching $100 argue that Cardano’s highly scalable blockchain, paired with its rigorous academic approach to development, positions it for widespread adoption that could catapult its value to new heights.

On the flip side, skeptics point out that for ADA to hit $100, its market capitalization would need to swell into the trillions, a scenario that seems improbable without an extraordinary and unprecedented surge in global demand.

While the potential for staking rewards and a burgeoning DeFi ecosystem on Cardano offers hope for significant growth, fierce competition from established players like Ethereum and Solana, combined with the crypto market’s inherent volatility, suggests that such a lofty price target may remain out of reach absent a seismic shift in the industry.