Cardano experienced a remarkable 60% surge in price this past weekend, surpassing the $1 mark on Sunday following the announcement by US President Donald Trump regarding the establishment of a digital asset reserve, which includes ADA.

Although the initial excitement was palpable, the momentum has waned. ADA has faced a setback, with a 20% drop in the last 24 hours, slipping below the crucial $1 threshold once again.

Has the Cardano Rally Come to an End?

ADA reached over $1 after the news of the proposed US crypto strategic reserve by Trump, featuring ADA, BTC, ETH, XRP, and SOL among others. However, the fervor surrounding the announcement seems to have fizzled out, triggering profit-taking among ADA traders. Presently, the coin is trading at $0.82, showing a 20% decrease in the past day.

Analyses of technical indicators on a daily chart indicate a diminishing demand for ADA. The Relative Strength Index (RSI) is on a downward trend, signaling a decrease in buying pressure. The RSI, a significant momentum gauge, is nearing the 50 center line.

The declining RSI hints at a shift towards bearish momentum, with market participants opting to sell for profit rather than acquiring more ADA. Moreover, ADA’s price is on the verge of falling below its 20-day exponential moving average (EMA), accentuating the short-term downward trend.

Despite the current scenario, if buyers step in at the $0.72 support level, there is a chance of ADA rebounding to $0.94. A renewed push could potentially propel Cardano's price towards a three-month high of $1.32.