Cardano Price Analysis: ADA Struggles to Keep Gains as Positive Momentum Fades

ADA’s 7-day gains currently stand at 22.7% compared to a 14% loss for Ethereum (ETH) and a 1.7% retreat for Solana (SOL) during this same period.

The crypto community showed skepticism of the list initially provided by President Trump, while Bitcoin (BTC) maximalists criticized the potential addition of altcoins like ADA and XRP to a strategic reserve.

ADA Needs to Stay Above $0.85 Today

The daily chart shows that ADA is clinging to a former resistance level at $0.85 per coin that is now acting as support during the beginning of the American session.

Today’s session will be critical to determine if the asset still has a chance to maintain some of its post-announcement gains or if it will succumb to the faith of others like SOL and ETH, whose Sunday rally was fully reversed during yesterday’s market rout.

Momentum indicators still favor a bullish outcome for this rally, as the Relative Strength Index (RSI) is still above the signal line. Moreover, the MACD’s histogram is also in positive territory, although a light green bar – declining momentum – has popped up today.

If bulls manage to keep the price above $0.85, ADA’s rally could grow a pair of legs. The unexpected inclusion of the token in such an important list is an important pad in the back for a network that has been overshadowed by the rise of Solana (SOL) and BNB Chain (BNB).

Meanwhile, the hourly chart shows that bulls lost the fight during the beginning of the American session, as sellers managed to reverse a significant uptick that came after the opening bell.

The $0.85 area has turned into resistance for now, but momentum is favoring buyers as the Relative Strength Index (RSI) is still above the signal line while the MACD is also displaying steadily rising green bars.

Traders should be careful not to get caught up in the tug of war at this level. A volatile movement in one or the other direction may provide confirmation of the session’s direction – especially if bears prevail.

A bearish outcome could push ADA to evaporate most of its Sunday gains as it happened to other tokens. The path of least resistance is down, with a short position being the most favorable trade in terms of risk-reward.

Aggressive short-sellers could set their stop right above the $0.85 resistance and their exit target at around $0.65, meaning a 2.83 risk-reward ratio.

Critics Question ADA’s Inclusion on Crypto Reserve

Tyler Winklevoss, the co-founder of the crypto exchange Gemini, commented that he did not think ADA is “suitable” for this initiative. He stressed that only BTC meets the standard required to be included in the reserve.

Other critics mentioned that Cardano is not a decentralized network, as the Cardano Foundation makes most of the decisions concerning the project’s roadmap. However, the project clarified that the Chang Hardfork gave the community full control over the blockchain’s future.

Data from Cardano Explorer shows that single pool operators make up for 16% of the amount of staked ADA – an indicator of decentralization. Meanwhile, the largest organization running Cardano nodes is Avengers, whose 1.37 billion staked ADA accounts for just 3.7% of the total.

Although Trump’s list of assets may be preliminary, the market took it as a statement of the importance that Cardano has for the crypto ecosystem as it was publicly recognized by the head of state as one of the dominant forces in the industry.