Cardano Leads Rebound as Crypto Market Detangles from Terra
May 13, 2022
Cardano (ADA) led the large-cap cryptocurrencies in gains on Friday as the market seemingly moved on from the Terra fiasco. The cryptocurrency currently trades at $0.577 or +22% in the early London session on Friday. That said, the broader market has jumped by 4.3% after recovering by about $60 billion.
As most are familiar with, a LUNA and UST implosion, which began on Monday, sent the entire crypto market spiraling out of control for several days, with Bitcoin plummeting to the $25K region and Cardano to the $0.383 low.
As of this morning, Binance, eToro, and Bybit had delisted LUNA and UST from their platforms, worsening the predicament of the embattled crypto company. At press time, LUNA trades at $0.000009, while UST trades at $0.12. With the problem persisting even after two network reboots, many believe that Terra might be done for. However, we will continue to monitor developments around the situation.
Yesterday, Tether (USDT) also lost its $1 peg, as it dropped to the $0.9511 level, sending renewed panic among traders of a possible crypto meltdown. This worsened the sell-off seen in Cardano, forcing it to hit its lowest point in over 15 months.
However, USDT has regained its $1 peg after gaining 1.78% to $0.9981 this morning. This rebound dragged the rest of the market along, possibly detangling it from the Terra situation.
Key Cardano Levels to Watch — May 13
After breaching the midpoint on my long-lasting channel, Cardano has recorded a decent bounce over the last 24 hours, as it tapped the $0.600 mark. As mentioned earlier, the broader crypto market appears to have freed itself from the bearish bias around Terra and now aims at its long road of recovery.
That said, the overall bias remains bearish within the channel until we see a push above the $1 mark. In the meantime, a bullish candle close today should help the cryptocurrency record some meaningful gains over the weekend.
Meanwhile, our resistance levels are $0.600, $0.700, and $0.800, and our support levels are $0.500, $0.400, and $0.300.
Total Market Capitalization: $1.31 trillion
Cardano Market Capitalization: $19.5 billion
Cardano Dominance: 1.49%
Market Rank: #7
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