The crypto market added about 4.4% to its total market capitalization in 24 hours to Tuesday, 31st, May 2022 as Bitcoin (BTC) made significant gains, and traditional markets reported signs of strength at the start of the week.
Cardano’s ADA Shot Up 25%, Topping Gains in Crypto Majors.
Cardano’s ADA token was the biggest gainer, posting a 17% rise to trade over 64 cents on Tuesday. The prime catalyst included a rise in the issuance of native assets on the Cardano network, with more than five million assets getting minted there. Another booster was the upcoming Vasil hard fork, a type of network upgrade expected to help scale capabilities.
Trading charts indicated ADA support at 45 cents level, but it could encounter strong resistance at the 80 cents mark.
Bitcoin Up 35% from the Recent Bottom, Uphill Battle not Easy
After plunging by 60% from the peak of November 2021, Bitcoin put up a spirited battle to reach the USD33,500 mark. According to data from TradingView, BTC/USD consolidated after reaching USD32,200. This means that the pair remained bullish on two consecutive days (Monday and Tuesday) of the week.
Despite the show, it appears that analysts are not yet impressed. A Popular Twitter account going by the name iI Capo Of Crypto indicated that the bounce was contrary to the forecasts.
“Nice push from the bulls yesterday. This week I’ve been mostly wrong because I thought we were going down and didn’t expect this bounce. However, this move up is showing the same signs as the move that deviated above 45k-46k,” expressed iI Capo Of Crypto.
According to Caue Oliveira, an analyst at Brazilian analytics outfit BlockTrends, the large entities are yet to regain confidence in the crypto after the recent fall.
“Whales/institutions not yet deployed all their firepower on the market!” he summarized his argument in a Twitter thread. “These large entities continue to reduce activity, exposing their caution with the global scenario. A close look at their moves can provide the true signal of a real reversal,” added Oliveira.
New Terra LUNA Shoots Up By 40% after Listing on Binance
The Terra’s newly minted token, LUNA, reported a huge gain of 39.41% after listing on the Binance crypto exchange. At the time of going to press, LUNA was trading at USD8.18, with self-reported supply of 280 million. This gives it a market capitalization of USD1.8 billion, according to CoinMarketCap.
The new token was launched on Terra 2, a new blockchain after the de-pegging of the algorithmic stablecoin, terraUSD (UST). All investors who held the collapsed UST before de-pegging were airdropped with the new LUNA. The old Luna token is trading at USD0.0002 and has now been rebranded LUNC. This new token is part of the revival strategy for the collapsed Terra ecosystem.
Other cryptos that also made significant upshots were ETH, XPR and AVAX. ETH added 5.8% even as gas took a downtrend. Falling in gas fees indicates low demand for the network. XRP and AVAX followed closely, reaping 5% and 4%, respectively.