Cardano Price Surges to $1.175

Cardano price surged to a high of $1.175 on Monday, its highest level since December 12 last year. At its peak, the ADA price had risen over 130% from February’s lowest point.

Cardano Price Jumps as US Strategic Reserves Hopes Rise

Cardano’s significant increase followed Donald Trump’s endorsement, naming it among the top cryptocurrencies for crypto strategic reserves. Analysts supporting Cardano highlighted that ADA token holders ratified its on-chain constitution, that it boasts 100% uptime, and is interoperable with Bitcoin.

Trump’s endorsement has led to increased confidence that the SEC will approve a spot Cardano ETF, with approval odds rising from 13% in January to 70% now. The approval of a spot ADA ETF would allow American investors to invest without managing private keys. Previous spot Bitcoin and Ethereum ETFs have seen significant inflows, exceeding $40 billion and $2.6 billion, respectively.

ADA Tokens like Minswap, Indigo, and Snek Jumped

Cardano’s surge triggered substantial movements among its ecosystem tokens. Minswap, the leading DEX in the Cardano network, increased by over 52%, achieving a market cap over $53 million, with a 24-hour trading volume of $114 million.

Indigo Protocol (INDY) saw a price increase of 45%, bringing its market cap to over $27.6 million. Indigo is focused on tokenization solutions in the blockchain sector and has a total value locked exceeding $90 million.

Snek, a prominent meme coin in the Solana ecosystem, surged by 40%, reaching a market cap over $342 million.

Will Cardano Token Increases Continue?

In comparison to established blockchain networks like Ethereum and BNB Smart Chain, Cardano tokens remain relatively small and illiquid, with many not listed on major exchanges such as Coinbase and Binance. Minswap is currently traded on MEXC and CoinEx, while Snek is available on Gate.io, MEXC, and CoinEx.

A key risk investors face is the buy the rumor, sell the news phenomenon, where assets are bought in anticipation of events and sold upon their occurrence, as seen previously with Ethereum’s spot ETF approvals.

Cardano Price Analysis

The ADA price originally peaked at $1.175 after Trump’s announcement but later fell to $0.95 as the market adjusted. The anticipated scenario could see ADA decline to $0.789, which corresponds to the 50% Fibonacci retracement level. However, if ADA manages to surpass this week’s high of $1.175, it could indicate a continued upward trend, potentially reaching $1.32 and boosting other Cardano tokens.