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As news broke yesterday that Cardano (ADA) will be added to the Strategic Reserve of the United States of America, the price of the eighth biggest cryptocurrency surged by over 72% in just one day. Going all the way from $0.645 to $1.1488, ADA rewrote any price prediction that was in place and definitively changed its narrative.
From being called an "Ethereum killer" to a "dino coin" and a cryptocurrency that no one uses, the Cardano token is now on the verge of becoming an asset that will be nothing less than the strategic reserve asset of the United States.
Tomiwabold OlajideSo, let's take a look at what's happening with ADA right now in terms of price action.
Cardano (ADA) price outlook
After the pump and euphoria, as usual, there is a "hangover" as a result of which the Cardano token experienced a correction worth 20.58%, from the highs to the lows, and found a strong support at the well established level of $0.93 per ADA. There, the market reacted, and Cardano rallied back to $1.
This reaction is actually a noteworthy one, as it places ADA's performance in classic textbook price action, where the token pumps, pulls back a bit to test buyers' reaction and after that, what usually follows, is another wave of growth.
For the Cardano token, this could mean a march towards $1.3, which is the next key price level.
Alex DovbnyaAs things stand, the bias in ADA is currently leaning towards a test of that peak, which could mean another 30% jump from the current price point.
It should be noted that anything can change in a matter of minutes, as we have seen after recent events, so this scenario is not set in stone, but rather a possibility.
Dan Burgin
Vladislav Sopov