Over the last day, the global crypto market cap increased by 0.18% to $934.13B. A total of $86.22B has been traded over the last 24 hours, representing an increase of 12.69% in trading volume. The market is starting to recover and some of the altcoins such as CAKE, ETHW, and AAVE are among the top gainers.
ETHW Markets are at Risk of Bull Traps
The price of ETHW has recovered more than 150% within eight days following its smart contract attack. That suggests that investors believed in the project’s long-term viability.
However, from a technical perspective, the rally has caused weaker trading volumes. According to data from Bitfinex, fewer participants were involved in the ETHPoW token’s price movement during the past eight days.
The falling trading volumes and the increasing divergence between the price of ETHW and its trading volumes suggest that the interest of investors in the project has started to fade. It suggests that the token’s price could fall in the coming days.
The increasing divergence suggests that the interest of investors in the project has started to fade. This setup is supported by the descending trendline that has acted as resistance for the token since September 2. Most traders will likely sell their positions near the mentioned resistance on the four-hour chart. Even the token’s latest decline, which started on September 27 and came within the same trendline, could lead to an extended price correction.
Due to the increasing divergence between the price of ETHW and its trading volumes, the short-term technical outlook for the token is negative. If the token price continues to decline, it could fall to the $8 to $9 range. This level coincides with the ascending trendline support, which could cause a 25% drop from its current price.
CAKE Trading Volume Spikes Over 50% In 24 Hours
It was only two months after CAKE’s launch in September 2020 that it hit its lowest value. The token is currently trading at around $4.60. It is significantly below its all-time high of $43.96, which was attained on April 30, 2021.
Despite the significant loss, it is still possible that the token is still attracting strong interest from investors. According to the price data, the Christmas season came early for the digital asset. If the recent trading volume of the digital currency is any indication, it is likely selling like pancakes. The move could signify that the market is expecting a boost in value. The reason is the high levels of excitement that it has generated. The cryptocurrency was placed on the list of prominent BNB projects in the past week.
The bullish trend for the cryptocurrency is expected to continue as long as the price remains above $4.50, which will allow it to test the $5 resistance level. If the demand for the token continues to increase, it could be a good sign that the short-term trend for the cryptocurrency is starting to turn positive.
7.35 Percent Rise in AAVE Price
AAVE has risen 7.35% to $79.64 as of press time. That means that it has successfully breached the previous high of $77.53.
The price of AAVE has now broken through the upper band of the Bollinger Bands. This resistance level is now being tested at the $78.63 mark. On the other hand, the lower band is being watched at the $73.83 level. The Relative Strength Index (RSI) has also shown signs of recovery.
The price of AAVE has been falling for several hours, but the bulls have started to take over. The price action has also caused a significant asset devaluation, which was a good sign for the sellers.
Although the price of AAVE is currently in a sideways consolidation, it is starting to show signs of strength and is poised to make more gains. This asset suffered a huge loss of $74.34 during the previous day. However, it has managed to bounce back and is now showing signs of life. Notably, the situation with the currency is still unpredictable as either the bulls or the bears will decide to drive the coin higher.