Market Update: BTC Slips, ADA holds, LUNA Skyrockets

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Despite the entire crypto market being subdued, few coins do not fail to surprise investors with their price moves. As a majority of the coins were preparing for BTC crypto to break and hold above the psychological resistance at $40,000, the price failing to maintain above the level dropped the expectations of investors. Altcoins, the followers, too missed to keep up with the higher prices.

However, there stood exceptions. Terra cryptocurrency, for instance, rallied over 100% while the entire crypto market was struggling to hold at technical demand levels. Apart from Terra, the fifth largest crypto – Cardano (ADA) had buyers highly bidding at the Resistance levels, not letting the bears slump it.

Few cryptocurrencies usually going out of sync with the majority has indeed become the new normal. The market making a move in selected cryptos despite the price action in all being the same is a clear indication that the fundamentals of those cryptos are in play, leading the big players to gun for it.

Why LUNA Rallying Over 100% was Not Unusual?

LUNA crypto that was trading between $5 and $8 finally broke through the two-month range and made a higher high all the way up to $15. Counting from the lows of $4.5, the Terra crypto has returned a whopping 235% within a month or so. As mentioned, the technicals being the same as that of Bitcoin (BTC), the fundamental factors have let the LUNA market propel with considerable velocity.

LUNA Ecosystem Expands Rapidly

The Terra ecosystem is growing close to exponential rates. The long list of partners and projects being launched on the Terra blockchain can potentially be one of the major reasons for the price of LUNA to blast north.

The thriving ecosystem now has projects in several domains, including decentralized finance (DeFi), Non-fungible tokens (NFT), and payment protocols. Terra also acts as a bridge to blockchains such as Ethereum and Solana.

Besides, the acceptance of wrapped ether to Anchor protocol which would bring staked rewards to the terra platform, and the burning of LUNA tokens can be accounted as two other factors to pump the market.

The Bears are not into Cardano

Like all the consolidating cryptos, ADA, too, was ranging between $1.1 and $1.4. Though the market never made successful attempts to breach the higher level, the recent price action stands bull-biased.

Again, it is the recent fundamental updates that have led the prices to sustain at current levels.

The positive sentiment in the market comes from the statements made by the founder Charles Hoskinson regarding the introduction of smart contract features to the Cardano blockchain. The upgrade is considered to be huge as the developer communities were impatiently waiting for a long time.

Hoskinson asserted that the smart contract would be available right after the Alonzo hard fork. He also opined that the establishment of smart contracts would make the infrastructure of Cardano more efficient and reliable.

“Cardano (ADA) users will be able to “run smart contracts the moment that hard fork comes on Cardano infrastructure and building an increasingly better environment for Cardano apps to be developed and deployed on.” – Hoskinson added.

Technical Price Action Update

Bitcoin (BTC)

The world’s largest cryptocurrency – BTC that looked enticing after the recent run let down the expectations of traders who anticipated the market to hold above the resistance level. Despite the strong push from the buyers from $30,000, the market failing breach through a significant level leaves a weak impact on the buyers.

That being said, as on writing, the market seems to have found support at $38,000. The buyers are inching higher gradually, but it is no guarantee that the bulls are ready for take-off as of yet.

Cardano (ADA) Price Analysis

The consolidation brought the seller into the market, but interestingly, the demand zone held intact. Although the market attempted to breach below the Support (Demand Zone), the bulls never let the bears take over at these levels.

The recent bull run took the price of ADA crypto from $1.00 to $1.4 in a week’s time. Being in the bear’s territory (Resistance), few wicks on top have begun to show up. But a bullish candlestick followed by it is a clear indication that the buyers are trying to fight back strong.

Terra (LUNA)

One unit of LUNA cryptocurrency worth $22 a few months ago got hammed significantly in May. However, the market held at the major Support at $5. The momentum of buyers from the Support was similar to that of Bitcoin for the entire consolidation period. But the absence of sellers at the Resistance changed the game in LUNA. It paved the way for the buyers to continue their push, which is now evident from the current price action. The market freely broke through the $8 Resistance level and went on to rally over 100% in the last few days.

Now get these three cryptos and several others from our list of reputed cryptocurrency exchanges.

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