Cardano’s ADA Price Increases As Major Cryptocurrencies Recover
Traders Remain Cautious. Following nearly a week of declines, Cardano Ada Price increased by as much as 16 percent on Wednesday.
Terra’s LUNA and Cardano’s Ada price both increased by up to 16% in the last 24 hours, leading to gains in major cryptocurrencies on Wednesday.
LUNA’s 16 percent increase was aided by the announcement that Singapore-based Luna Foundation Guard (LFG), a nonprofit organization dedicated to developing the Terra ecosystem, raised $1 billion through the sale of LUNA to several influential crypto funds and investors. One of the most prominent crypto circles will be used to establish a bitcoin-denominated foreign exchange reserve for UST, Terra’s algorithmic-based stablecoin.
Following Tuesday’s gain, LUNA encountered resistance at the $58 level. Prices could move to the $60 level if they maintain their hold above $58, but rejection could result in a return to last week’s $48 level.
ADA reclaimed the $0.90 level on Wednesday morning following a weekend sell-off to the $0.81 level. There is no immediate resistance at current levels, implying that prices could move to the $1 tier if recent buying activity continues. Last week, ADA fell below the $1 support level, which it had held since the final weeks of January.
Cardano Ada Price are increasing in value as global markets recover.
The recovery came following a week-long sell-off in risk assets due to the ongoing Russia-Ukraine conflict. Bitcoin fell 13% to almost $36,600. A level was last seen in mid-2021. ADA’s price fell by 16 percent, while ether, Avalanche’s AVAX, and Polkadot’s DOT fell by 14 percent.
Cryptocurrency market capitalization fell from $2 trillion to as low as $1.7 trillion over the last week as global markets reacted to the macroeconomic effects of Russia-Ukraine tensions, inflation, and hawkish Federal Reserve policies in the United States. S&P 500 has fallen for two days continuously and is now down more than 10% from its all-time highs.
The US imposed sanctions on Russia on Tuesday night. President Joe Biden stated that the country has “disconnected Russia’s government from Western financing” and threatened to take additional measures if Russia “continues its aggression.”
Following the announcement of the sanctions, Asian and European market futures rose on Wednesday. The MSCI Asia Pacific Index increased by 0.3%, while the Stoxx Europe 600 Index increased by 0.8%. Futures on the Nasdaq 100 index of US technology companies increased by 1.1 percent.
In the last 24 hours, a marginal recovery in stocks has translated into significant moves in cryptocurrency. Bitcoin increased by 4.6 percent, ether increased by 6.8 percent, and Solana’s SOL and XRP increased by 7%. The total market capitalization increased 5.8% to $1.85 trillion.