The cryptocurrency market is a mix of red and green candles. Market sentiments and conditions change every day, as volatility is one of the most important characteristics of the crypto market. In the past few weeks, the crypto sector struggled from a bearish trend.
The dipping market frustrated the investors and the overall crypto community. Tokens like Bitcoin, Ethereum, Cardano, and other altcoins suffered from significant losses.
Over the last day or so the market has shown signs of recovery. This might be an indication of a trend reversal. However, the trend has to become more mature before validating. Nonetheless, there are several global factors that can cause another dip in the market. There is uncertainty in the crypto market and because of this instability traders are staying cautious.
Crypto market turns around or prepares for further losses?
The recent disputes and escalating clashes between Russia and Ukraine were a major reason for the plunging crypto market. These events are having an impact on stocks and the forex market as well. Despite the recent relief, the market is still looking unsettled for investors. But a 4.40% rise in the global crypto market cap overnight suggests that investors are trusting the market recovery pattern,
Bitcoin is trading around the $38.5K mark whereas ETH is back to $2,700. At the same time, several altcoins have improved by a fairly bigger margin. The likes of XRP, ADA, SOL, and DOT have gained to recover from the losses of last week. Moreover, LUNA, AVAX, MATIC, and SHIB have recorded outstanding gains by posting long green candles in the last 24 hours.
Along with these coins, gaming tokens have also experienced a fair increase in their price. The likes of Uniswap, Axie Infinity, and Decentraland have gathered some potential. Yet, most of these recovering tokens are still down in terms of their weekly price change. They will need to continue with this uptrend to reach their previous levels.
Under such circumstances, the performance of Bitcoin and Ethereum will prove to be a very crucial factor for the crypto market. Bitcoin is looking to move beyond the $40K mark once again. Previously, it was rejected by the resistance levels of $44,000.
On the other hand, Ethereum looks to regain $3,000 in the coming days. In the coming days, the development between Ukraine and Russia will be critical for the performance of these tokens. Also, the predicted approval of the crypto regulating bill in Brazil could have a positive impact on the market.
