TL;DR
-
XRP and ADA surged after Donald Trump announced a strategic crypto reserve that included these assets. Whales bought millions of tokens, signaling strong confidence.
-
Analysts predict XRP could hit $3.65, and ADA may rally to $9. However, with RSI above 70, both assets are in overbought territory, raising the possibility of a short-term pullback.
Filing the Bags Again
The past 24 hours have been more than successful for the cryptocurrency sector, with the total market capitalization soaring back above $3.1 trillion. While Bitcoin (BTC) and Ethereum (ETH) have recorded substantial resurgences, it was XRP and ADA that made the headlines.
Ripple’s native token exploded to just over $3 several hours ago. Later, the price retreated and now trades at around $2.70 (per CoinGecko’s data). Cardano’s ADA experienced an even more impressive pump, skyrocketing above $1.10 and currently hovering above $1.
The assets’ positive performance is directly linked to one of Donald Trump’s latest announcements. On March 2, the US president confirmed that his administration will move forward with the establishment of a strategic crypto reserve that will include XRP, ADA, and other digital assets.
The disclosure infused huge excitement in the crypto space, while large investors increased their exposure to the aforementioned tokens. According to Ali Martinez, whales purchased more than 270 million XRP in the past 48 hours and accumulated roughly 200 million ADA in the last 24 hours.
These actions signal strong confidence in the assets and could inspire smaller players to hop on the bandwagon and inject fresh capital. Additionally, continuous efforts of that type reduce the circulating supply of XRP and ADA, making them potentially more valuable (assuming demand doesn’t head south).
The Next Possible Targets
Despite slightly retracing from their local tops, XRP and ADA were forecasted to reach new peaks in the near future. The X user CRYPTOWZRD believes Ripple’s native token “is breaking its downtrend after confirming a beautiful retest with a higher low.” In their view, a push above $2.80 could ignite a price jump to $3.65.
For their part, JAVON MARKS assumed that ADA could continue its impressive performance, envisioning a price rally to as high as $9 in the next few months.
Despite the bullish environment, investors should be cautious. After all, the Relative Strength Indexes (RSI) of both assets have recently spiked above 70, which indicates overbought territory and could be followed by a pullback.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
