As the crypto markets embark on another weekend, a drop in trading volumes is anticipated. Despite an influx of positive news, stagnant charts have led to further losses for investors. While Bitcoin fluctuates around $110,000, a few cryptocurrencies like AAVE and PUMP Coin have registered notable gains in just the last hour.
Crypto Coins Offer Little Excitement
Despite a concluded gold rally and new records in the US stock markets, the desired impact on cryptocurrencies has not materialized. Neither the alleviation of tensions with China diminishing gold prices nor the trillion-dollar giants boosting the markets have managed to galvanize the crypto charts. While a promising 12-month agreement is in view, with an official signing anticipated next week, market movements remain lackluster.
Michael Poppe reiterated the prevailing sentiment, stating, “The market is boring and suffocating; I’m not pleased with the red candles.” He added, “Fundamentally, the markets are in such a strong position that price increases seem inevitable,” yet the overall optimism is waning. Most altcoins haven’t even neared their election period peaks.
DaanCrypto shared the TOTAL chart suggesting that closes under $3.54 trillion could be painful. He emphasized the importance of monitoring the market’s position while acknowledging that the primary cause of Bitcoin’s relative weakness is the cyclical selling pressure many 4-year cycle traders exert during these months.
Absorbing this selling pressure necessitates substantial capital. Until new highs are reached or sustained by Q1, breaking the 4-year cycle remains challenging. As long as prices hover at this level, the market will face considerable selling pressure, fostering belief among participants that the cycle has ended. If this pressure can indeed be absorbed, it may be beneficial, but without enough willing buyers, it risks becoming a self-fulfilling prophecy.
AAVE and PUMP Coin Surge
DaanCrypto discusses fear-induced sales from those anticipating cycle peaks, suggesting that focusing on short-term strategies may prove beneficial in the coming months. As one of the major players in DeFi, AAVE saw around a 5% rise, which could continue towards the $240-$248 resistance range. If the weekend’s trend persists, $262 might be retested.
PUMP Coin also rebounded from a $0.00424 base, gaining around 5%. If conditions favor PUMP Coin over the weekend, it could return to the $0.004818 and $0.00508 range. Positive momentum starting from this range previously might boost investor enthusiasm upon its recovery.
