Crypto Market Testing Resistance

Crypto Market Testing Resistance

Market Picture

The cryptocurrency market has been on the rise, growing by over 5% since Tuesday and reaching a total capitalisation of $2.81 trillion. Optimists are hopeful that, after hitting recent highs, the market is ready to shift towards growth. However, despite this excitement, it’s important to note that the crypto market has yet to break above its 200-day moving average, currently sitting close to $2.9 trillion. A strong rally above this level could trigger an active buying phase, but there’s also a risk of bears setting up a trap, as they’ve done several times before.

Sentiment has improved, though. The Fear and Greed Index climbed back to the middle of its range by the end of the week, a level we haven’t seen in four weeks. This shift out of the extreme low zone could be the first sign of a trend reversal, suggesting there’s still plenty of room for growth.

Bitcoin has been showing steady progress, with a nice bounce on Wednesday. Thursday morning saw a brief spike, pushing the price of Bitcoin above $87,300, its highest point in two weeks. This was an attempt to break through the 200-day moving average, but the rally was short-lived. For Bitcoin to maintain momentum, staying above this key level is crucial. If it does, it could spark renewed interest in buying a variety of coins that have been in a correction phase for a while.

News Background

In the news, there's a significant update regarding Ripple. The US Securities and Exchange Commission (SEC) has dropped its case against the company. Ripple's CEO, Brad Garlinghouse, confirmed the SEC's decision to drop the appeal, bringing an end to a case that had been ongoing for over four years.

Meanwhile, a report from Artemis and Dune reveals impressive growth in the stablecoin market. Over the past year, the total supply of stablecoins has increased by 63%, while monthly transaction volume surged by 115%, reaching a total of $35 trillion.

The developers of the non-custodial wallet TON Space have added the ability to pay network fees to Telegram Stars. This solution will simplify messenger users’ work with crypto and allow them to buy digital goods in Mini Apps.

By the FxPro Analyst Team