The overall capitalization of crypto markets increased by 4.4 percent in the last 24 hours, as bitcoin (BTC) showed signs of bottoming out and traditional markets showed strength at the start of this week.
After nine weeks of losses, Bitcoin regained the $31,000 level in US hours on Monday. That move coincided with a relief rally in Asian markets, as well as technical data indicating that the asset may have bottomed out between $29,000 and $30,000.
Cardano’s ADA token led gains among crypto majors on Tuesday, rising 17 percent to over 64 cents. A rise in the issuance of native assets on the network – over five million assets have now been minted on Cardano, according to data – and the upcoming Vasil hardfork, a network upgrade, are two fundamental catalysts.
Price-charts suggest ADA saw support at the 45 cents level. 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 could see strong resistance at the 80 cents mark.
Ether (ETH) added 5.8% even as gas fees fell to lows. A fall in fees usually implies falling demand for the network, suggesting the move may have been led by traders betting on a market-wide revival instead of being driven by fundamental growth.
XRP rose 5%. Avalanche’s AVAX and Solana’s SOL added up to 4%. Memecoins dogecoin (DOGE) and shiba inu (SHIB) saw limited gains, rising just 3.8% and 2.3% respectively, to underperform the broader market.
Elsewhere, metaverse tokens saw a bump in 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.
The relief in crypto markets comes amid optimism in Asian markets. 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.
The rally in Asia continued on Tuesday. 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%