Cardano’s social sentiment has reached its most bullish level in four months, driven by speculation about the network’s potential role in the United States crypto strategy. Among the five assets named in the US crypto strategic reserve on March 2, Cardano and XRP are the only two still holding gains from the announcement.
ADA responded with the strongest price reaction, surging over 53% in a single day. While prices have since retraced from a high of $1.175, ADA remains well above the $0.645 consolidation zone it held before the announcement. Meanwhile, growing optimism around the Cardano ecosystem has shifted from earlier skepticism to widespread bullish sentiment.
Social Sentiment Flips Bullish
Until recently, Cardano faced strong criticism within the crypto space. Both founder Charles Hoskinson and analyst Ali Martinez pointed out that negative sentiment surrounding ADA had reached extreme levels. However, recent price action and increased relevance in the industry have dramatically changed the narrative.
According to the on-chain analytics platform Santiment, ADA’s social sentiment has peaked. The platform’s positive comments about Cardano on social media now outnumber negative remarks by a 3.5-to-1 ratio—the highest level since early November.
Speculation has played a major role in this shift. Over the weekend, rumors circulated that the US Securities and Exchange Commission (SEC) had revealed the government’s pro-crypto stance and outlined specific roles for certain blockchains. The unverified reports claimed that Cardano would be the smart contract network for US government services.
Related article: Cardano Founder Dismisses Claims of Cardano’s Centralization
Can Social Sentiment Drive Prices Higher?
History shows that strong social sentiment often influences asset prices. A bullish community outlook attracts investors, increasing demand and pushing prices higher. Many traders also rely on social media trends to guide their investment decisions.
Solana’s recent price decline serves as an example of how sentiment affects markets. After excitement around Solana-based meme coins faded, social sentiment turned negative, leading to a 14% correction.
Analysts remain optimistic about Cardano’s potential rally, citing the current surge in bullish sentiment as a possible trigger. Crypto commentator CryptoELITES predicts that ADA could see a 12x increase, pointing to a bullish cup-and-handle pattern on the charts.
Cardano trades at $0.715 at the time of writing, marking a 0.42% gain in the past 24 hours. ADA may be gearing up for another major price breakout if positive sentiment continues.
