Cardano’s ADA Spikes 25%, Leads Gains in Crypto Majors

The crypto markets contributed 4.4% to total capitalization over the last 24 hours, as bitcoin (BTC), saw signs of bottoming and traditional markets showed strength at week’s beginning.

After nine weeks of losses, Bitcoin recovered the $31,000 level on Monday in U.S. time. That move came amid a relief rally in Asian markets, and technical data suggesting the asset may have bottomed out between the $29,000 to $30,000 range.

Cardano’s ADA token led gains among crypto majors with a 17% rise to trade over 64 cents on Tuesday. Fundamental catalysts include a rise in the issuance of native assets on the network – over five million assets have now been minted on Cardano, data shows – and the upcoming Vasil hardfork, a network upgrade expected in June that would increase scaling capabilities.

Price-charts show that ADA experienced support at the level of 45 cents. Readings on the Relative Strength Index (RSI) – a tool used by traders to calculate the magnitude of an asset’s price move – fell to nearly 33 earlier this week, which suggested early signs of ADA bottoming out. However, the token may face resistance at the 80-cent mark.
CoinDesk - Unknown

ADA reached its lowest point in the past week, but resistance still exists at the 80-cent mark. (TradingView)

Even though gas fees dropped to lows, Ether (ETH) increased 5.8%. The fall in fees is usually indicative of falling demand for the network. This could indicate that traders were betting on fundamental growth and not on a market-wide revival.

XRP increased 5%. Avalanche’s AVAX and Solana’s SOL added up to 4%. Memecoins dogecoins DOGE and shiba INU (SHIB), experienced limited gains. These numbers were below the market’s average of 3.8% and 2.3%.

Other metaverse tokens experienced a rise in their prices. Axie Infinity’s AXS rose 46%, while The Sandbox’s SAN rose 11%. Growth in AXS came weeks after the game’s “Origin” version was launched in April, which created a demand for the tokens.

As optimism grows in Asian markets, crypto markets are experiencing relief. Coronavirus cases in China dropped to under 100 for the first time since early March, spurring an increase in sentiment among traders betting on a wider economic recovery.

Tuesday’s rally in Asia was continued. Hong Kong’s Hang Seng and China’s Shanghai Composite added over 0.70% since the session’s start, while futures on U.S. tech-heavy Nasdaq 100 gained 0.63%.

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