• Cardano surged after Trump’s announcement of a U.S. Crypto Strategic Reserve, sparking speculation.
• Traders are questioning if this momentum is sustainable or a fleeting move.

Cardano [ADA] has emerged as one of the biggest winners following U.S. President Donald Trump’s announcement of a national crypto strategic reserve.

The news sent shockwaves through the market, igniting speculation about the altcoins included like Cardano, XRP and Solana [SOL] — and ADA surged about 60% in response.

Trading volume spiked as investors piled in, fueling hopes of a sustained breakout.

But volatility in crypto is a different ball game altogether — so, is this the beginning of a larger move for Cardano, or just another fleeting rally?

Cardano: Trump’s crypto reserve announcement sparks market frenzy

President Donald Trump came good with his announcement of a U.S. Crypto Strategic Reserve, aimed at bolstering the industry after what he called “corrupt attacks” by the Biden administration.

In his initial statement, Trump confirmed that XRP, Solana, and Cardano would be included in the reserve, but Bitcoin [BTC] and Ethereum [ETH] were conspicuously absent.

The omission sent waves of speculation through the market before Trump quickly followed up with a clarification,

“And, obviously, BTC and ETH, as other valuable cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!”

The move fueled intense debate over which assets would benefit most, but with its mighty surge, the initial beneficiary seems to be ADA.

ADA skyrockets

Following President Trump’s announcement of a U.S. Crypto Strategic Reserve, Cardano experienced a sharp surge, climbing approximately 60% as traders speculated on its potential inclusion.

The first chart shows ADA/USD on the hourly timeframe, where a sudden price spike took ADA past key moving averages, reflecting the influx of buyers.

The RSI briefly entered overbought territory above 73, indicating strong momentum before a pullback. The MACD histogram turned positive, further reinforcing the bullish sentiment.

Santiment data highlighted a massive increase in transaction volume and whale activity, particularly after the announcement.

ADA’s price rallied alongside a surge in whale transactions exceeding $1 million, signaling institutional or high-net-worth interest.

However, after peaking, selling pressure emerged, suggesting short-term traders locking in profits.

Market reaction and post-announcement trading behavior

Source: Coinglass

Following the announcement, ADA’s futures open interest surged past $1.2 billion, signaling a rapid influx of speculative capital. This coincided with a sharp price rally toward $1.20, reinforcing a strong bullish sentiment.

Source: Coinglass

However, the Funding Rate data indicates a persistent negative bias, suggesting that short traders have aggressively built positions, likely anticipating a correction.

This imbalance hints at a potential short squeeze if bullish momentum persists.

The combination presents a volatile setup, with traders either doubling down on shorts or facing liquidation if buying pressure sustains.

Near-term price action will depend on whether the influx of leverage supports further gains or triggers a reversal due to overextension.

Can Cardano sustain the momentum?

ADA’s short-term trajectory hinges on whether its parabolic rally finds sustained buying support or faces profit-taking pressure.

A continuation could trigger a further short squeeze, pushing ADA past $1.20, while a retracement may test liquidity around $0.90.

The market’s reaction to ADA’s formal recognition in Trump’s strategy could solidify its role in the evolving crypto-political landscape, potentially attracting institutional interest.

If this narrative strengthens, ADA may establish itself as a strategic asset beyond speculative trading.

Broader market impact remains a key factor — ADA’s surge could spill over into other altcoins, particularly smart contract platforms and politically aligned tokens, amplifying sector-wide volatility and creating opportunities for traders navigating this shifting landscape.