ADA pumped 70% after Trump’s crypto reserve news but is now down 23%. Analysts still see a bullish future ahead.
Cardano (ADA) is in the red, dropping 23% in the past 24 hours to $0.81. This comes after last week’s insane 70% pump following Donald Trump’s announcement that ADA would be part of the U.S. strategic crypto reserve alongside Bitcoin, Ethereum, Solana, and XRP.
Following the announcement, ADA’s futures trading volume surged from $15M to more than $26M, with 92% of investors placing their bets on long positions. ADA reached a high before it cooled off, currently testing a critical support level of $0.80. If it holds firm, analysts expect a 35% pump to $1.14. But if it breaches, we may witness a fall to $0.65.
Whales are still in the buying mode despite the dip. On-chain metrics indicate $110M ADA was withdrawn from exchanges over the last 48 hours, with large investors piling up 420M ADA.
Market analysts are still optimistic and believe ADA can double in value, with ETF discussions in full swing. DeFi usage on Cardano is also picking up, and active daily addresses are rising.
Is this therefore a correction ahead of another rally, or has the hype ended?
Also Read: Crypto Market Crashes 10% as Trump’s Trade Policies Shake Investors