Why did Cardano (ADA) rise 70%? Analysis of three major price catalysts and market signals.

On March 3, 2025, a message from the White House shook the crypto world: Trump announced that the United States would establish a cryptocurrency strategic reserve, with Cardano (ADA) selected as a core asset along with Bitcoin, Ethereum, Solana, and XRP. The market reacted instantly, with the price of ADA soaring 75% within 24 hours, jumping from $0.6461 to $1.13, and trading volume skyrocketed by 1450%.

Although it subsequently fell back to around $0.86 due to market fluctuations, this event revealed the immense explosive potential hidden in Cardano. In-depth analysis indicates that the momentum for the ADA price to achieve another 70% leap is building up.

Policy & Regulation: A Booster for National Strategies

When crypto assets are incorporated into the national reserve framework, their market status has undergone a qualitative change. The Trump administration’s inclusion of ADA in the strategic crypto reserves not only represents official endorsement but also suggests that the U.S. government may become a major buyer in the Cardano spot market.

This decision directly triggered a frenzy of buying by whales. On-chain data shows that within 24 hours of the announcement, large holders accumulated nearly 200 million ADA, worth approximately 150 million dollars. The massive influx of funds provided solid support for the price.

The deeper impact lies in breaking the regulatory ice. Cardano founder Charles Hoskinson has established a policy office in Washington, D.C., clearly advocating for the repeal of the SEC’s SAB 121 rule and supporting the Responsible Financial Innovation Act. If these two policies are implemented, they will remove key barriers for institutional entry.

Market rumors suggest that Hoskinson may be hired by the Trump administration as a crypto policy advisor. If this news turns out to be true, Cardano will have a unique advantage within the regulatory framework in the United States.

Technology and Ecology: Performance Breakthroughs and Application Implementation

The evolution of technology has always been the underlying logic for Cardano’s value growth. In May 2025, the Cardano node will be upgraded to v.10.4.1, introducing the UTXO-HD feature to optimize transaction processing efficiency, while the Plutus team enhances the security of smart contracts through formal methods.

The key breakthrough lies in scalability. Through Leios technology simulation, the Cardano network’s transaction processing capacity has reached 1000 transactions per second (TPS). This figure gives it the foundational capability to support large-scale DeFi and NFT applications, directly targeting the core battlefield of Ethereum.

The ecological expansion is equally rapid:

• Flow DeFi released a white paper to build a new type of decentralized finance protocol.
• Reached a strategic partnership with Strike Finance to expand the lending market.
• Trust Wallet supports in-app DRep delegation, lowering the participation threshold for governance.

It is particularly noteworthy that the Japanese market has exploded. The trading volume of the ADA/JPY trading pair has surged, and the awakening of the Asian market has brought a new growth point for Cardano.

Market Signals and Institutional Trends: Clear Evidence of Capital Allocation

The technical chart has issued a clear buy signal. ADA has broken out of a bullish flag pattern on the weekly chart, which has been forming since December 2024, and this breakout lays the foundation for a subsequent 90% price increase. On the daily level, it has strongly reclaimed the 200-day Exponential Moving Average (EMA), forming a classic bullish technical structure.

The pace of institutional entry is accelerating. Grayscale has added ADA to its smart contract fund portfolio, alongside Ethereum, Solana, and others. More importantly, Grayscale has submitted a spot Cardano ETF application to the SEC—if approved, it will become the first independent ADA ETF product, opening the floodgates for institutional capital.

The derivatives market is also turbulent. In the surge in early March, open interest in ADA futures surged 63% to $371 million, a nine-month high. Traders are expanding their positions for potential volatility, and call premiums in the options market continue to climb.

Analysts’ target prices show an optimistic consensus:

• After stabilizing at 1.05 USD in the short term, the target is 1.90 USD (potential increase of 82% from the current level).
• Bitpanda Academy has given a bullish forecast of $5.66 by the end of 2025.
• In the long term, Javon Marks even proposed a technical target of $7.82.

Investment Risk Reminder: Calm Thinking Amidst Frenzy

Despite the bright prospects, investors still need to be wary of threefold risks:

• Regulatory variables: The SEC may still classify ADA as a security, causing legal uncertainty.
• Ecological Shortcoming: The total value locked (TVL) on the Cardano chain is only $440 million, which is less than 0.3% of the total DeFi market.
• Development Pace: The academically prioritized development model has resulted in an upgrade speed lagging behind competitors like Solana.

The market sentiment indicator also suggests a short-term overheating. During the surge in March, the Relative Strength Index (RSI) for ADA once broke through the 80 overbought line, triggering profit-taking. The Fear and Greed Index is currently at a neutral 50 points, but 78% of technical indicators still show bearish signals.

The cryptocurrency market has never escaped the cycle of volatility. When ADA hovers around $0.68 in June 2025, whales have quietly accumulated 170 million tokens. The ETF application submitted by Grayscale awaits a decision from the SEC, and the lights at the Washington policy office remain on all night.

These signals converge in the same direction: a 70% increase is merely a technical rebound target; the real value reconstruction may only truly begin after breaking through $1.90.

Author: Blog Team *This content does not constitute any offer, solicitation, or recommendation. You should always seek independent professional advice before making any investment decisions. *Please note that Gate may restrict or prohibit all or part of its services from restricted regions. Please read the user agreement for more information, link: