Cardano (ADA) Price Surge: Key Drivers Behind the 73% Rally

Cardano (ADA) has experienced a significant price surge, up 73% from its recent lows of $0.57, reaching as high as $1.19. This surge comes on the heels of a major announcement from U.S. President Donald Trump, who directed the creation of a Strategic Crypto Reserve that includes Cardano, alongside Solana (SOL), XRP, Bitcoin (BTC), and Ether (ETH). The announcement marks a major shift in U.S. policy towards digital assets and has sent shockwaves through the cryptocurrency market, driving up the value of ADA.

Trump’s Strategic Crypto Reserve: The Catalyst for Cardano’s Price Surge

The most immediate catalyst for ADA’s price increase is President Trump’s directive to establish a U.S. Strategic Crypto Reserve. On March 2, 2025, President Trump posted on Truth Social that he had ordered the President’s Working Group on Digital Assets to include XRP, Solana, and Cardano in the reserve, with Bitcoin and Ether later added to the list. This reserve aims to position these cryptocurrencies as key strategic assets for the U.S. government, signaling a shift from previous regulatory hostility toward more acceptance of digital currencies.

Trump emphasized that the reserve would help bolster the crypto industry, especially after years of regulatory challenges under the previous administration. The announcement had an immediate effect on the market, with ADA’s price spiking by more than 70% within hours of the news, reaching a 12-week high of $1.20. This marked a significant recovery from the lows of $0.64, making it one of the most significant rallies in Cardano’s history.

Whale Accumulation Fuels ADA’s Rally

Alongside the announcement from President Trump, ADA’s price surge was supported by strong accumulation activity among large investors, often referred to as “whales.” Data from market intelligence firm Santiment shows that investors holding between 10 million and 100 million ADA tokens have been steadily increasing their holdings since the price dropped to $0.57. In the past three days alone, these whales have added more than 130 million ADA tokens to their portfolios, signaling strong confidence in the future of Cardano.

This accumulation is often a precursor to price increases, as whales hold significant market influence. Furthermore, DappRadar reports a substantial uptick in unique active wallets (UAWs) on the Cardano network, with a 157% increase over the past 24 hours, reaching 3,720 UAWs. The rise in UAWs and daily transactions, which have jumped by over 200% to 17,120, suggests growing interest in the Cardano ecosystem. New wallet creation typically correlates with new users entering the network, driving both demand and price.

Additionally, the total value locked (TVL) in the Cardano network has increased by 54%, from $323 million on March 2 to $499 million on March 3, further highlighting the growing adoption of ADA.

Cardano’s Price Action: Key Levels to Watch

Cardano’s rally has brought the price above key support levels, including all major moving averages and the psychological level of $1.00. At the time of writing, ADA is trading at around $1.05. According to technical analysis from Cointelegraph Markets Pro and TradingView, ADA has executed a high-volatility breakout and is now forming a potential bullish consolidation around the $1.05 level.

Pseudonymous analyst Arvid Crypto highlighted that ADA needs to hold above $1.00 for the rally to continue. If this level holds, ADA could see a continuation of its upward movement, potentially targeting further liquidity grabs above current resistance levels.

Popular analyst Kwantxbt also observed that ADA’s consolidation around the $1.06 to $1.07 range after its impressive 61% surge indicates that the market could be entering an accumulation phase. Key levels to watch include resistance at $1.19 on the upside and support at $1.05 on the downside. If ADA manages to maintain support above $1.05, it could set the stage for another leg up in the price.

Conclusion: Strong Momentum for ADA

Cardano’s recent rally is fueled by a combination of factors, including President Trump’s Strategic Crypto Reserve announcement, whale accumulation, and growing adoption on the Cardano network. The shift in U.S. regulatory stance and the inclusion of Cardano in the Crypto Strategic Reserve have sparked significant bullish sentiment in the market, sending ADA’s price soaring.

As Cardano continues to hold key support levels, it is well-positioned for further gains if the broader market remains favorable. With increasing whale accumulation, growing network activity, and the continued support from U.S. policy, ADA may continue to see strong momentum in the coming weeks. Investors will be keeping a close eye on the $1.00 level and beyond as the next phase of Cardano’s price action unfolds.