What to Know:

• President Trump’s intention to establish a U.S. strategic reserve of Solana (SOL), Cardano (ADA), and XRP has caused these assets to surge by as much as 60% on Sunday.
• Traders are remaining cautious until the plans become more concrete.
• Attention is also directed towards ETF inflows for insights into investor positioning.

U.S. President Donald Trump’s plans to create a strategic national reserve composed of Solana (SOL), Cardano (ADA), and XRP triggered a remarkable surge of up to 60% in these assets on Sunday. Still, traders exercise caution until more definitive plans are presented.

“The current upward momentum might see a correction in the short term, as investors price in the crypto reserve announcement and determine the legal viability for Trump to create the reserve,” Kevin Guo, director of HashKey Research, said via a Telegram message on Monday. “The Federal Reserve chairman, Jerome Powell, has previously indicated that the US central bank cannot hold a Bitcoin reserve, which presents technical challenges to Trump’s plans.”

Kevin Guo further remarked, “The President’s crypto summit may follow up with more details or possible announcements to advance the market’s recovery from recent lows.”

Trump declared on Truth Social late Sunday that XRP, SOL, and ADA would be included in a U.S. strategic crypto reserve. He later announced Bitcoin and Ethereum’s inclusion and has been discussing the idea since his 2024 presidential campaign.

This announcement immediately elevated market values, with Bitcoin increasing by 6.5% to over $93,000 on Monday, while the broader CoinDesk 20 (CD20) saw a growth of 7%.

Meanwhile, Chainlink’s LINK, Uniswap’s UNI, and Movement’s MOVE tokens increased by 8% in the past 24 hours, largely due to their association with the Trump-family backed World Liberty Financial.

Chris Yu, CEO of SignalPlus, shared insights that volatility may persist until more details are clearly defined, but the crypto market sentiment has shifted significantly, symbolizing a potential continuation of the bullish trend. He expects investors to closely monitor inflows to U.S.-traded ETF products after they’ve seen record outflows last week.