Cardano’s ADA leads ‘mini rally’ for cryptocurrencies

As the week ended, the crypto market has found an unlikely leader in Cardano’s ADA cryptocurrency in mounting a tepid but much-needed rebound following another week of misery for digital currencies.

According to CoinGecko, the combined value of all cryptocurrencies moved up by 4.4% to reach $1.6 trillion. Leading the rally was ADA and its 17% gain, peaking at $1.70 before slightly correcting to $1.52 at press time. It still remains the fourth largest virtual currency by market capitalization, valued at close to $49 billion.

On the same day, every asset in the top-20 had some gains with bitcoin climbing by 3.5% to trade at $35,833 and ethereum adding 4.3% of value to climb at $2,431. However, currently, the leaders are changing hands at lower prices, $34,431 and $2,283, respectively.

Driving force behind ADA’s rally

Oversold conditions that followed the recent market correction seemed to be favorable to Cardano’s ADA for its latest rally as it briefly breached the oversold indicator on the Relative Strength Index (RSI) on Sunday before bouncing back the next day.

Before the market flash crash on May 19, ADA was one of the top-performing digital assets and was able to soar to as high as $2.46 on May 16 before losing 55% of the value the following week. Moving past the immediate shift in market sentiment, it looks like the fundamentals of cryptocurrency remain intact.

The Alonzo Smart Contract

Input Output Hong Kong, Cardano’s development team, gave ADA supporters a reason to celebrate with the anticipated launch of the Alonzo Smart contract testnet.

It has been announced by the team that they are working on a gradual deployment of Alonzo’s testnet in May and June, with early adopters having the opportunity to test the first alpha testnet, Alonzo Blue, over the next month.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/cardanos-ada-leads-mini-rally-for-cryptocurrencies/