Crypto Market Review, Dec. 7

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Arman Shirinyan

Mar­ket returns to depres­sive state as biggest assets on mar­ket are bleeding

The recov­ery of the cryp­tocur­ren­cy mar­ket end­ed on a low note, with most major assets tum­bling below thresh­olds they con­quered dur­ing the rever­sal of the cryp­tocur­ren­cy indus­try. Unfor­tu­nate­ly, the decreas­ing sell­ing pres­sure came on the scene with descend­ing buy­ing power.

Polygon’s volatility squeeze

Despite the mas­sive 38% price spike, MATIC has tech­ni­cal­ly been mov­ing in a pro­longed range­bound with sud­den break­outs on the way. At the same time, the price of Poly­gon’s token is on the same lev­el as back in July, which puts the almost half a year return for MATIC at 0%.

MATIC Chart
Source: Trad­ingView

Apart from the con­fus­ing price per­for­mance, Mat­ic might show us an unex­pect­ed volatil­i­ty spike in the fore­see­able future as all mov­ing aver­ages on the dai­ly chart of the asset have been con­verg­ing for the last few days. Dur­ing volatil­i­ty spikes, assets might move irra­tional­ly and cre­ate sig­nif­i­cant pres­sure on their holders.

Ethereum gives up

Ethereum’s recov­ery was not the most notable event on the mar­ket in the last week. The sec­ond-biggest cryp­tocur­ren­cy on the mar­ket has indeed gained some trac­tion and reached the local resis­tance lev­el. But the growth backed with increased issuance and tum­bling burn rate were extreme­ly neg­a­tive fac­tors that doomed this recov­ery to failure.

For the last eight days, Ethereum has been delib­er­ate­ly try­ing to climb back above the 50-day mov­ing aver­age that would open ETH’s path to gain­ing a foothold above the $1,300 price thresh­old. Unfor­tu­nate­ly, the afore­men­tioned fac­tors caused a rever­sal to the $1,200 price range and will most like­ly cause a fur­ther downslide until bears lose the abil­i­ty and fund­ing to push ETH lower.

The most like­ly sce­nario from here would be a com­plete cor­re­la­tion with Bit­coin and the rest of the mar­ket, as no major growth fac­tors are hap­pen­ing on the Ethereum ecosys­tem. The pre­vi­ous­ly report­ed recov­ery of the NFT indus­try does not seem to be hav­ing any effect on the sec­ond-biggest asset on the market.

Litecoin’s fearless battle with market

The clas­sic cryp­to and the sil­ver of the dig­i­tal assets indus­try have been sur­pris­ing investors with its explo­sive price per­for­mance dur­ing the depres­sion on the mar­ket. Since the mid­dle of Novem­ber, Lite­coin has gained more than 50% to its val­ue, becom­ing one of the best per­form­ing assets on the mar­ket in the last 30 days.

How­ev­er, LTC lost most of its momen­tum dur­ing the con­sol­i­da­tion that began on Nov. 30. Accord­ing to vol­ume pro­files, bulls were unable to push LTC fur­ther up as some short-term hold­ers start­ed tak­ing prof­its, cre­at­ing strong bar­ri­ers for the ral­ly’s acceleration.

Addi­tion­al­ly, we are see­ing a spike in the num­ber of large trans­ac­tions worth $100,000 or more. Such a dynam­ic could hint at upcom­ing prof­it tak­ing, which should be con­sid­ered yet anoth­er bear­ish fac­tor for LTC, in addi­tion to the ‌revers­ing cryp­tocur­ren­cy market.

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