The cryptocurrency market witnessed mixed trading on Tuesday, with several major tokens experiencing notable gains while others declined. Bitcoin, Solana, Toncoin, Cardano, and Avalanche were among the top performers, recording gains of up to 7%. In contrast, Ethereum, XRP, Dogecoin, Shiba Inu, and Polygon faced downward pressure, with losses of up to 2%.

Meanwhile, the global cryptocurrency market capitalization rose by 1.25% in the past 24 hours, reaching approximately $2.01 trillion, reflecting a market-wide recovery after recent volatility.

As of 12:23 p.m. IST, Bitcoin was trading 1.8% higher at $56,829, continuing its upward momentum and approaching the critical $57,000 mark. Ethereum, however, remained subdued, trading below the $2,500 level.

Market experts pointed to improving sentiment as a key driver behind Bitcoin’s recent strength. “The crypto market continues to show signs of recovery, with Bitcoin marking another green day and breaching the critical $56,500 resistance level,” said Vikram Subburaj, CEO of Giottus. He further noted, “Bitcoin whales have accumulated 30,000 BTC during the market correction earlier this week. Market sentiment is also improving, as reflected in the Crypto Fear and Greed Index, which has risen from an extreme fear level of 17 to a fear level of 29 in the past 24 hours.”Despite this optimism, some analysts cautioned against overly bullish expectations. Avinash Shekhar, Co-Founder & CEO of Pi42, commented, “Bitcoin’s price is gradually rebounding to $57K. However, low trading volume and a bearish market indicate cautious investor sentiment.”The volume of all stablecoins is now $97.52 billion, which is 94.12% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.In the last 24 hours, the market cap of Bitcoin, the world’s largest cryptocurrency, fell to $1.123 trillion. Bitcoin’s dominance is currently 55.87%, according to CoinMarketCap. BTC volume in the last 24 hours declined 40.7% to $46.9 billion.Altcoins also saw varied performances, with Solana emerging as a top gainer, rallying nearly 7% to $151. Toncoin followed with a 3.5% rise to $5.75, and Polkadot added over 3% to its value. Vikram Subburaj commented on Solana’s strength, stating, “Solana continues to showcase relative strength – it is up 7% today and trading above $150. The altcoin market continues to play catch-up to Bitcoin.”

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)

After a massive price crash, the overall cryptocurrency market has experienced a significant upside move in the last 24 hours. Amid this, Solana (SOL) the world’s fifth-biggest cryptocurrency has gained massive attention from crypto enthusiasts following its substantial price surge. 

Breakout in Solana (SOL)

During the price crash, SOL reached the lowest level of $109.66. Since then, it has experienced a notable price surge of over 33%. However, this price surge has caused a crucial breakout of the $145 level in the 4-hour time frame. 

Solana price prediction

According to expert technical analysis, SOL looking bullish as it is trading above the 200 Exponential Moving Average (EMA) and recently gave a breakout of a crucial resistance level of $145. 

Following this breakout, there is a high chance it could soar another 10% to the $161 level. However, if investors’ interest and market sentiment remain bullish then SOL could soar to $185 to its next resistance level. 

This breakout and this surge in open interest will be potentially responsible for the upcoming bullish rally in the coming days. 

SOL price analysis

At press time, SOL is trading near $147 and has experienced a notable price surge of over 15% in the last 24 hours. Despite this massive price surge, its trading volume has dropped by 56% during the same period.

Meanwhile, SOL’s open interest (OI) has skyrocketed by over 17%, in the last 24 hours. This significant surge in OI indicates higher interest from investors and whales.

Solana outperforms BTC, ETH, and BNB

With its massive price surge, SOL has outperformed top assets including Bitcoin (BTC), Ethereum (ETH), and BNB (BNB) in terms of price increase. According to coinmarketcap, SOL has experienced a price jump of over 15%, whereas, BTC, ETH, and BNB have seen only 7%, 4.5%, and 7.5%, respectively, in the last 24 hours.

SOL’s major liquidation level

As of now, SOL’s major liquidation levels are at $136 on the lower side and $153 on the upper side, according to an on-chain analytic firm CoinGlass.

If the market sentiment remains unchanged and SOL soars to the $153 level, nearly $86 million worth of short positions will be liquidated. Conversely, if sentiment changes and SOL falls to the $136 level, nearly $162.5 million worth of long positions will be liquidated.

Topline

Bitcoin, ether and other top cryptocurrencies regained ground Tuesday, partially recouping losses after the market suffered one of its worst selloffs in years as Wall Street and global markets reeled over fears of a U.S. recession.

Key Facts

Big Number

$2.07 trillion. That’s the total value of the cryptocurrency market. It has grown nearly 8% in the last 24 hours alongside rising prices for Bitcoin and Ether, which make up around 53% and 15% of the market, respectively. Similarly, the crypto market’s gains over the past day only modestly offset the considerable downturn from the past week, when the market shrank more than 16% and shed more than $400 billion in value.

News Peg

Cryptocurrency markets crashed on Monday in one of the sector’s worst routs since two of the top crypto assets went mainstream this year with the launch of spot-bitcoin and spot-ether exchange-traded funds in the U.S. in January and July, respectively. Ether notched its worst day since 2021 in the downturn, with bitcoin and other assets like dogecoin also sinking to six-month lows. Even with the contraction, the market has still grown nearly 70% since this time last year and bitcoin reached an all time high of nearly $74,000 earlier this year. The downturn has ignited fears that the broad upward trajectory the market has been on since emerging from the depths of the cryptocurrency winter in late 2022—when the market dipped below $1 trillion in overall value, less than Bitcoin alone today—could be over. The volatile crypto assets are risky investments and respond sharply to sometimes unpredictable stimuli, most recently developments in the presidential race between Donald Trump and Kamala Harris (and Joe Biden, before he dropped out). Monday’s decline follows grim U.S. jobs data that intensified fears of a U.S. recession on the horizon. Markets across Europe, Asia and North America crashed as traders hedged against potential volatility in the midst of the selloff. Major U.S. stock indices like the S&P 500, Nasdaq Composite and Dow closed with their lowest prices in months and the 500 companies on the S&P collectively lost $3.5 trillion in market capitalization by the end of the day.

Will Bitcoin, Ether And The Cryptocurrency Market Pick Up Soon?

It’s not clear whether Monday’s crash will be short lived or if it signals the start of a broader market downturn. Crypto markets are highly volatile and unpredictable but largely tend to mirror sweeping movements in more traditional financial markets. A continued downturn in the economy could signal further drops to come. The prospect of a broadening war in the Middle East and similar events have historically trickled down into the crypto market as well.

Further Reading

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