The cryptocurrency market has seen some turbulence in recent weeks, with the market’s bullishness cooling down. Popular assets like Ethereum, BNB, and Bitcoin show signs of a greater and deeper fall.
Despite the bad mood a few weeks ago, current sentiment-based metrics imply investors may not panic. No fundamental variables would boost the bitcoin market or protect it from additional losses.
Only after COVID-19 limits and Washington D.C. stimulus negotiations clear up may traders be hesitant to buy in crypto.
Most bitcoin derivatives trading platforms have shown rising open interest, indicating recovering liquidity and depth.
Institutional investors interested in crypto are becoming more confident in the market as open interest rises. Unfortunately, bears aiming to beat bullish retail investors may account for most market volume.
Bears have been manipulating markets without cash using these trading platforms’ high leverage and minimal fees.
Retail traders without skill and experience are exposed to bears with more knowledge, resources, and risk appetite.
To add insult, no regulatory authority closely monitors these markets to prevent a manipulation or safeguard traders from bear traps.
The crypto market has been experiencing a significant uptrend since the beginning of 2021, mainly due to Bitcoin’s immense growth.
In recent months, altcoins have also gained momentum, leading to an overall bullish sentiment in the industry.
However, many cryptocurrencies have entered consolidation channels that could signal a trend reversal. Most big digital assets are still trading in their uptrends and have not lost their market share.
However, most of these currencies are currently witnessing short-term corrections, which may suggest a negative reversal. This could lead to further losses in value across the board and further pressure on prices in the long term.
Snapback of the Shiba Inu
An unexpected reverse rally lifted the Shiba Inu (SHIB) cryptocurrency market past its 200-day moving average on Wednesday, the 18th.
SHIB investors and traders rejoiced as the spike appeared to break the downtrend they had been in for months.
However, their celebration was short-lived as bears quickly returned to the scene to push prices back down. Over the next few days, SHIB retraced most of its gains, leaving many who bought at the peak with losses.
Despite this setback, some optimists remain hopeful that SHIB can still reach new highs in 2021 and beyond.
If it can break beyond the $1 trillion market capitalization and regain momentum, it might rise significantly this year.
Crypto aficionados buzzed about the Shiba Inu (SHIB) token’s 75-day high after a stunning breakout. Unfortunately, a notable sell-off from whale investors quickly extinguished this initial excitement.
SHIB’s support levels collapsed under this rapid sales pressure. Genesis Trading’s bankruptcy has exacerbated the market’s gloomy mood and SHIB’s value.
SHIB is trading at the same price as three days ago, with no evidence of a bullish recovery.
Nothing has shaken XRP’s confidence
XRP appears untouched by Genesis’ bankruptcy and the cryptocurrency market’s reversal. Since the beginning of January, it has been on a local uptrend showing no signs of slowing down.
XRP’s price has consistently risen throughout 2021 despite a drop in late December and early January. Institutional demand increased because of its low costs and fast transaction times compared to Bitcoin and Ethereum.
XRP may also appear less dangerous to investors because more banks are adopting it in their payment systems. At press time, XRP trades above the 50-day moving average for the first time in several weeks.
Investors hoping to profit from the bitcoin market’s optimistic attitude will be encouraged by this reversal.
XRP’s Relative Strength Index (RSI) is far from overbought, suggesting a further increase in the coming weeks or months.
Crypto traders have been waiting for XRP to break above its 50-day moving average, which might signal a bull run.
The ratio between two averages – known as ‘the golden cross’ – often suggests that prices are set to rise further.
Unfortunately, despite numerous statements about the network’s fundamental importance, only a little has been happening around XRP’s ecosystem.