3 Altcoin Winners From Donald Trump’s Crypto Reserve Plan and Their Next Move

Key Takeaways

• Donald Trump announced a strategic crypto reserve.
• XRP, Cardano (ADA), and Solana (SOL) are included.
• The three assets increased by double digits afterward.
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The crypto market fell significantly in February, taking Bitcoin (BTC) to a low of $78,197, the lowest price since November 2024.

After a small bounce to end the day, March brought a massive rally triggered by U.S. President Donald Trump’s announcement of a strategic crypto reserve. This caused the crypto market to recover by double digits.

According to the announcement, XRP, ADA, and SOL will be included in the reserve besides BTC and Ethereum (ETH).

With that in mind, let’s look at who benefitted the most from this announcement and whether they can sustain their increases in the long term.

Why Did Cardano Go Up?

The ADA price had fallen inside a descending parallel channel since its cycle high of $1.32 in November 2024.

While the price fell well below the channel’s support trend line on Feb. 3, it bounced afterward (green icon), reclaiming the trend line and validating it as support twice more.

ADA started another upward movement on Feb. 28 and accelerated it on March 2 after the Trump strategic crypto reserve announcement. It broke out from the channel the same day.

Nevertheless, the price did not move above the $1.10 horizontal resistance area, which is the final one before the cycle high.

After such a breakout, the most likely movement is a retest of the channel, consolidating between its resistance and the $1.10 level. Whichever breaks first can determine the trend’s direction.

Technical indicators and the wave count lean bullish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences (orange) before the breakout, increasing its legitimacy. They are both in positive territory.

The wave count shows a completed A-B-C correction, with waves A and C having the same length. This fits perfectly with the channel since the pattern often contains corrective movements.

As a result, a breakout above $1.10 is more likely than a breakdown, possibly taking ADA to the 1.61 external Fibonacci retracement of $1.85.

XRP Reaches Range High

Since December 2024, the XRP price has ranged between $2.05 and $2.80. After creating a double bottom pattern on Feb. 3 and 28, the price rallied on March 2, breaking out from a descending resistance trend line and reaching the range high.

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Currently, the XRP price attempts to validate the range as support. Doing so would confirm the validity of the breakout.

Technical indicators for Cardano are not as bullish as those for the stock since neither the RSI nor the MACD generated bullish divergences before the upward movement.

So, the XRP trend direction is not as clear-cut as that of ADA since a close below $2.80 would put the range back into play and take the XRP price to the resistance trend line at $2.40.

Alternatively, the bullish target is $4.40, created by the 1.61 external Fibonacci retracement.

SOL Price Breaks Out

The SOL price fell by 57% after its cycle high of $295 in January, culminating with a low of $125.58 on Feb. 28. However, the price broke out from its resistance trend line on March 3, possibly marking the end of its short-term correction.

Nevertheless, the breakout follows a five-wave decline. Therefore, the ensuing increase is likely to be a corrective A-B-C structure.

The move could end between the 0.5-0.618 Fibonacci retracement resistance area of $210-$130.

Furthermore, the RSI and MACD are not in bullish territory yet, and neither has generated any bullish divergence. As a result, Solana’s increase is most likely a relief rally.

ADA Leads the Way

ADA, XRP, and SOL are the three altcoins benefitting from Trump’s strategic crypto reserve announcement.

Cardano’s outlook is the most bullish moving forward, followed by XRP. In the long term, SOL is the least bullish of the three altcoins and is unlikely to reach new highs this cycle.