The Bitcoin ‘Fear and Greed’ index is back at ‘fear’ from ‘extreme fear’ for the first time in 73 days according to recent analysis. The data shows that the long-term trend is still up and that taking profits is still profitable when the Index consolidates around these levels. The Fear and Greed Index, last seen in May 2018, has returned to its early 2022 levels. This indicator took a hit when Bitcoin hit a multi-year low of around $17,500.
ETH Owns the Day
For altcoin traders, the outperformance of Ether over the previous day’s gains was notable. The rise in the price of ETH/USD over the past week continued overnight, with the currency climbing another 20% in just 24 hours.
The resistance at the 2018 high of $1,530 was relatively minor for bulls, and it formed a support area at the time of writing. According to the Game of Traders, Ethereum has closed above key resistance. Expect some big moves in the near term.
Notably, the rise of Ethereum has been one of the main factors contributing to the recovery in the crypto market cap. The second-largest market cap is set to have a highly anticipated event called “The Merger.” This event has additionally sparked speculations about its potential impact on other smart contracts.
Solana Outperforms Major Cryptos
Solana’s price behavior over the past seven days has outpaced Bitcoin, BNB, XRP, and Cardano. Despite the lack of upside compared to Ethereum, SOL is still expected to surpass Cardano’s market cap soon. If it continues to grow, its market capitalization will surpass Cardano’s.
The total market capitalization of cryptocurrencies reached $1 trillion on Tuesday, the first time this happened in several months. Despite the decrease in the trading volume, the total amount of money invested in cryptocurrencies remained relatively stable.
The Solana price rose as investors bought dips and continued to hold onto the asset. Its recent price increase pushed it past the $46 mark, which was its highest point this year.
A Positive Outlook for Polygon Trading Volume
The rise in trading volume can be considered a bullish sign. It suggests that a resistance break may be coming soon. During a volatile market, a break above resistance could be seen sooner.
According to data from Coinmarketcap, the 24-hour trading volume of the MATIC token has increased by over 70 percent. There was over $1.6 billion worth of transactions during this period.
The support trendline of the cryptocurrencies market has been acting as strong support for the recent rise of the Polygon token. Since it broke through various resistance levels, the price of MATIC has been rising.
The MATIC price may fall below $0.745 if it fails to maintain its upward trendline. On the other hand, if it manages to break above $0.745, traders may anticipate a stronger bullish reaction.
The Crypto Market Could Take Advantage Of This Opportunity
The short-term outlook for the cryptocurrency market is positive. The market may continue to move higher due to various factors. Some of these include the Fed’s actions to stop inflation and the rising interest rates. Due to a blackout period, the representatives of a financial institution will not be making public statements until the next meeting of the Fed’s monetary policy committee.
The consumer price index, which measures inflation, is expected to slow down. This metric had been rising for 40 years, but it might take a step back due to the decline in the prices of various commodities.
The support from traditional assets is helping the cryptocurrency market. Since the beginning of the year, the two sectors have been closely correlated. It could mean that cryptocurrencies could benefit from the bounceback in the stock market.