Why is Cardano (ADA) price up today?

Cardano (ADA) has recovered strongly, bouncing 60% from a low of $0.64 on March 2 to reach a 12-week high of $1.19. The rebound comes after President Donald Trump directed a working group to “move forward” with establishing a Crypto Strategic Reserve including Solana (SOL), XRP (XRP) and ADA.

Let’s take a closer look at all the main factors driving ADA price up today.

President Donald Trump’s Strategic Crypto Reserve

The most immediate catalyst for Cardano’s price surge today is US President Donald Trump’s executive order on the establishment of a Strategic Crypto Reserve.

What to know:

• In a March 2 post on Truth Social media platform, President Trump revealed that he had directed the President’s Working Group on Digital Assets to include XRP, Solana and Cardano in the Crypto Strategic Reserve.

• Later, Trump added Bitcoin (BTC) and Ether (ETH) to the list of crypto assets to be included, emphasizing that they would be at the “heart of the reserve.”

• This announcement marks a historic shift in US policy toward digital assets, signaling government endorsement of cryptocurrencies as a strategic asset class. 

• Trump emphasized that this reserve aims to bolster the crypto industry after what he described as years of regulatory hostility under the previous administration. 

• The market reacted swiftly, with ADA experiencing a reported 70% price increase within hours of the announcement, reaching approximately $1.20. 

Whale accumulation boosts ADA price

ADA’s rally on March 3 was preceded by notable accumulation among large investors, often referred to as whales, according to data from market intelligence firm Santiment.

Key points:

• Large investors, holding between 10 million and 100 million ADA, have been steadily acquiring more tokens following the latest crash to $0.57.

• Over the last three days, these whales have added more than 130 million ADA tokens to their holdings.

Additionally, DappRadar reveals an increase in unique active wallets (UAWs) on Cardano, which suggests fresh capital inflows.

• Cardano saw a 157% increase in UAWs over the last 24 hours to 3,720.

• Daily transactions have also jumped by over 200% to 17,120 in the same timeframe.

• This indicates growing adoption and interest in ADA. 

• New wallet creation often correlates with new users entering the ecosystem, which can drive demand and price. 

• This is also evidenced by the growing total value locked (TVL) on the Cardano network. 

• This metric has jumped by 54% from $323 million on March 2 to $499 million on March 3. 

ADA price must hold above $1.00

Cardano’s rally on March 2 saw it flip key levels into support, including all the major moving averages and the psychological level at $1.00.

Data from Cointelegraph Markets Pro and TradingView showed ADA price trading above this level at $1.05. 

“Cardano just executed a high-volatility breakout, pushing past key liquidity zones!” said pseudonymous analyst Arvid Crypto in a March 3 post on X. 

ADA price is now “forming a potential bullish consolidation around $1.05,” the analyst said, adding that the altcoin has to hold above $1.00 to continue the “next leg up.”

“If this level holds, expect a continuation toward liquidity grabs above.”

“ADA showing strong consolidation around $1.06-1.07 after that impressive 61% surge,” said popular crypto analyst Kwantxbt adding that the decreasing volume indicates entry into an accumulation phase. 

For Kwantxbt, key levels to watch for ADA price are the resistance at $1.19 on the upside and the immediate support at $1.05 on the downside.

“Looking bullish with potential for another leg up if it holds above $1.05.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.