Why is Cardano (ADA) price up today?

Cardano (ADA) has recovered strongly, bouncing 30% from March 4 low of $0.7570 to an intraday high of $0.9792 ahead of this week’s first-ever White House Crypto Summit. 

The top-ten altcoin is up 13% over the last 24 hours to trade at $0.9384 at the time of writing.

Let’s take a closer look at all the main factors driving ADA price up today.

Anticipation for the White House Crypto Summit

The first-ever White House Crypto Summit, scheduled for March 7, 2025, is generating significant buzz across the crypto industry, and Cardano is no exception. 

What to know:

• US President Donald Trump will host the first White House Crypto Summit on March 7.

• The summit is aimed at bringing together industry leaders to discuss regulatory policies, stablecoin oversight, and the potential role of cryptocurrencies in the US financial system.

• The attendees will include prominent industry leaders, including potentially Cardano founder Charles Hoskinson, along with members of the President’s Working Group on Digital Assets. 

• The summit will be chaired by Sacks and administered by Bo Hines, the executive director of the Working Group.

• This comes after Trump’s recent announcement of a US Strategic Crypto Reserve, explicitly naming Cardano alongside Bitcoin (BTC), Ether (ETH), XRP (XRP), and Solana (SOL)

• This has fueled speculation about a pro-crypto regulatory shift, with the summit expected to clarify the administration’s stance on digital assets. 

• The inclusion of ADA in the proposed reserve signals is boosting investor confidence. 

• Markets often rally in anticipation of favorable policy, and today’s price uptick reflects traders positioning themselves ahead of potential announcements that could cement Cardano’s role in a national blockchain strategy. 

• While details remain sparse, the summit’s promise of regulatory clarity is a powerful catalyst for ADA’s current momentum.

Cardano TVL recovers by 52%

DeFi protocols on the Cardano Network have also significantly increased since Feb. 28, improving investor trust. 

• Cardano’s total locked value (TVL) rose from $268 million to $408 million in six days, marking 52% weekly gains.

• The rise in TVL was led by Indigo (synthetics protocol), Liqwidi (Lending), and MinSwap (DEX), which registered increases of 32%, 30% and 29% in locked value, respectively, over the past seven days.

Related: Traders longing ADA futures spike after Trump’s crypto reserve reveal: Bitrue

• Cardano has also witnessed a considerable increase in onchain activity, evidenced by an increase in daily transactions since March 1, as per data from Artemis.

• Cardano’s open interest (OI) has also increased by $325 million over the same period, reaching $874.4 million on March 5.

• The funding rate remained negative, suggesting that many traders were shorting ADA, anticipating a pullback.

• If bullish momentum continues, this could trigger a short squeeze, forcing bears to cover positions and pushing ADA even higher.

ADA price still validates a bull flag

ADA confirmed a bull flag pattern on March 2, when it breached the upper boundary of the flag in the weekly timeframe at $0.80. 

What you should know:

• ADA is currently testing the resistance level at the $1.20 psychological level, as shown in the chart below.

• A high volume move above this level could accelerate the recent bullish momentum toward the technical target of the prevailing chart pattern at $3.20.

• This would represent a 238% gain from the current level.

• The relative strength index (RSI) is above the midline and has risen from 47 to 58 over the last 30 days, indicating an increasing bullish momentum. 

• The RSI’s value of 58 suggests that there is more room for the upside before oversold conditions set in again.

• Conversely, a weekly candlestick close below the upper boundary of the flag at $0.80 could invalidate the bullish thesis. 

• If this happens, ADA may continue its consolidation within the flag for a few more days.

The ADA price is “showing strong recovery at $0.95, up 21.87%,” said crypto analyst Kwantxbt in a March 5 post on X, adding:

“Volume surge and tight consolidation suggest the potential for a run up into the $1.05-1.10 range. Support at $0.92.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.