Cardano News Today: Crypto's Pressure Test: ADA and DOGE Lead Post-Crash Rebound as Market Cleanses Leverage

Cardano (ADA) and Dogecoin (DOGE) emerged as leading performers in the cryptocurrency market's recovery following a $19 billion liquidation event triggered by U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports. The flash crash, which erased nearly $380 billion in market value within 24 hours, saw Bitcoin (BTC) dip below $110,000 and Ethereum (ETH) fall below $3,700 before stabilizing. ADA and DOGE, however, rebounded sharply, gaining approximately 10% in 24 hours as traders sought undervalued assets.

The sell-off, which began on October 10, 2025, was exacerbated by leveraged positions and auto-deleveraging mechanisms on exchanges like Hyperliquid, where over 6,300 wallets were liquidated, including 205 wallets losing more than $1 million each. Despite the turmoil, ADA and DOGE attracted bargain hunters, with ADA trading at $0.7035 and DOGE at $0.2087 as of October 12. Analysts attributed their resilience to strong on-chain fundamentals, including ETF inflows and institutional exposure. Cardano's inclusion in the S&P Digital Markets 50 Index, for instance, bolstered its appeal to institutional investors.

Justin d'Anethan, head of partnerships at Arctic Digital, described the crash as an "emotional reset," noting that the liquidations removed weak leverage while preserving the long-term bullish structure of the market. "The washout burned leverage, not belief," he stated, emphasizing that ETF inflows and NEAR balances at cycle lows signaled a healthier market environment post-crash.

Technical indicators also supported the rebound. ADA's price action inside a symmetrical triangle and DOGE's whale accumulation of $23 million off exchanges hinted at potential for further gains. However, challenges remain: DOGE struggled to maintain its rebound, closing near $0.2451, while ADA faced resistance at $0.95–1.00.

The broader market's stability hinged on geopolitical developments. The U.S. and China's easing of trade war rhetoric-such as China clarifying its rare-earth export policies and Trump stating the U.S. "wants to help China, not hurt it"-helped restore risk appetite. Analysts like Jeff Mei of BTSE noted that if U.S.-China tensions avoid escalating into a full-blown trade war, the market could retest all-time highs.

Regulatory scrutiny intensified following the crash, with calls for investigations into exchanges like Hyperliquid, which accounted for $10 billion in liquidations. Hyperliquid's CEO, Jeff Yan, defended the platform's transparency, arguing that its on-chain data revealed a more accurate picture of market-wide liquidations, which he estimated at up to $40 billion.

Looking ahead, the market's trajectory depends on macroeconomic factors, including Federal Reserve policy and the approval of ETFs for XRP and other altcoins. While short-term volatility persists, the deleveraging event has set the stage for a potential "cleanse," with analysts suggesting a healthier market structure could emerge if liquidity and risk appetite stabilize.