Terra’s LUNA and Cardano’s ADA tokens surged as much as 16% in the past 24 hours to lead gains in major cryptocurrencies on Wednesday.

LUNA’s 16% jump was buoyed as Singapore-based Luna Foundation Guard (LFG), a nonprofit organization supporting the growth of the Terra ecosystem, said it raised $1 billion through the sale of LUNA to several influential crypto funds and investors.

The funding round, among the largest raises to date in crypto circles, will go toward building a bitcoin-denominated foreign-exchange reserve for UST, an algorithmic-based stablecoin in the Terra ecosystem.

LUNA hit resistance at the $58 level following Tuesday’s rise. Prices could move to the $60 level if they hold above $58, but rejection could mean a move back to the $48 level from last week.

Luna

LUNA hit resistance at $58. (TradingView)

ADA recovered the $0.90 level on Wednesday morning after a sell-off to the $0.81 level over the weekend. No immediate resistance exists at current levels, suggesting prices could move to the $1 level if current buying activity continues. ADA broke below the $1 support last week, a level it held during the final weeks of January.

ADA

ADA could run to the $1 mark. (TradingView)

Cryptos up as global markets rebound

The recovery came after a sell-off in risk assets over the past week due to the ongoing Russia-Ukraine conflict. Bitcoin fell 12% to nearly $36,600, a level previously seen in mid-2021. Prices of ADA dropped 16%, with ether, Avalanche's AVAX and Polkadot's DOT falling 14%.

Crypto market capitalization dropped from $2 trillion to as low as $1.7 trillion in the past week as global markets reacted to the macroeconomic effects of Russia-Ukraine tensions, inflation, and hawkish U.S. Federal Reserve policies. The S&P 500 fell for two days since the start of this week, and is now down more than 10% from lifetime highs at the start of 2022.

On Tuesday night, the U.S. imposed sanctions on Russia. President Joe Biden said the country has “cut off Russia's government from Western financing” and threatened tougher steps if Russia "continues its aggression."

Asian and European market futures rose on Wednesday after the sanction announcement. The MSCI Asia Pacific Index rose 0.3% while Stoxx Europe 600 rose 0.8%. Futures on U.S. technology firms tracker Nasdaq 100 rose 1.1%.

A marginal recovery in stocks converted to big moves in crypto in the past 24 hours. Bitcoin rose 4.6%, ether rose 6.8%, while Solana’s SOL and XRP increased 7% each. Total market capitalization rose by 5.8% to $1.85 trillion.

Market watchers remain cautious

Despite Wednesday’s jump, some crypto market professionals said current macroeconomic sentiment was not conducive to sustaining upward movements.

"The current environment mixing uncertainty around inflation, interest rates, and geopolitical risks, is likely to continue to impact crypto markets,” said Jordi Muñoz, CEO of PotionLabs, in an email to CoinDesk.

"We expect the turbulence in markets to continue while the geo-political, interest rates, and inflation risks fully play out. This may continue to impact crypto markets, but we remain bullish over the long-term value of crypto markets,” Muñoz added.

Alex Kuptsikevich, a senior financial analyst at FxPro, echoed the sentiment. “So far, the rebound of risky assets, which includes cryptocurrencies, can be considered as a movement within a downtrend,” he said in an email to CoinDesk.

“Bitcoin has been trying to correct from levels close to the lows of February, but this is probably not the bottom yet. Expectations of a rate hike by the US Federal Reserve and rising geopolitical tensions are putting pressure on all risky assets,” Kuptsikevich added.


All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP