Barring the US dollar-pegged stablecoins and Tron, all other top crypto tokens were up. Solana rallied 13% and XRP gained 11%. Uniswap and Polygon jumped up to 10% each.
The global cryptocurrency market cap jumped to $843.89 billion, rising more than 4% in the last 24 hours. However, the total trading volume jumped about 36% to $82.61 billion.
Most cryptocurrencies rose over strong comments from Elon Musk on the crypto market on Monday. Bitcoin gained as volatility in the crypto market continued following the collapse of FTX, said Edul Patel, CEO and Co-founder, Mudrex.
“On the other hand, Ethereum bounced off its support level at $1,180. It is likely that ETH might consolidate,” he said. “If buyers can hold the gained initiative, the correction may lead to the test of the $1,300 zone this week,” he added.
The Solana Foundation said on Monday that it has tens of millions of dollars in cryptocurrencies stranded on FTX – as well as 3.24 million common stock shares in Sam Bankman-Fried’s bankrupt crypto exchange.
The collapse of FTX and Alameda has sparked another round of deleveraging in crypto markets, and that’s likely to spur more “crypto quantitative tightening,” Morgan Stanley said in a research report.
In the aftermath of crypto exchange FTX’s fall, US Treasury Secretary Janet Yellen said that the industry needs “very careful regulation”, Bloomberg reported.
Dominant cryptocurrency exchange Binance’s chief executive Changpeng Zhao called for new but stable and clear regulations for the industry, in light of recent developments and participants “cutting corners”.
Institutional investors were souring on cryptocurrencies even before this week. The sudden downfall of Sam Bankman-Fried’s FTX may have permanently damaged their prospects of being included in mainstream portfolios.
Tech View by Giottus Crypto Platform
Decentralized exchange dYdX’s token by the same name has had a strong run lately. When its charts were analysed in October, it was trading at $1.2, and a potential for a rally of nearly 20% to $1.47 was seen. However, dYDX’s price has now doubled – trading at nearly $2.5 just a month later. Much of this can be attributed to the failure of the FTX exchange and the serious lack of trust in global centralized exchanges right now. It’s also the result of dYDX breaking out of a multi-month downtrend.
With dYdX falling after a high of $2.65, a clear 1market structure change remains yet to be established on the higher time frames. But dYdX has claimed a key resistance level at $2.6. If it continues to hold this level in the short term, a target of $3 followed by $3.5 and $3.75 will be next.
With its RSI indicator hitting overbought territories, some consolidation or even a mild correction down to $2 and below is possible. These should serve as good buy-on-dips opportunities, as sentiment for decentralized exchanges remains positive.
Support: $2, $1.8
Resistances $2.4, $3.0, $3.5
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)