Within the past 48 hours, the valuation of the crypto market has increased from $198 billion to $218 billion in a rally boosted by a surge in Ripple token XRP.
XRP, the native cryptocurrency of the Ripple blockchain network, recorded a 40 percent rise on September 21, continuing its momentum that was established earlier this week.
Qtum, Stellar, 0x and Cardano were some of the best performing cryptocurrencies on the day, recording 15 percent gains against the US dollar.
Throughout this week, Bitcoin recorded a 6 percent increase in price, stabilizing in the $6,700 region, while the majority of cryptocurrencies in the global market demonstrated 10 to 50 percent increase in value.
The struggle of Bitcoin to break out of the $7,000 resistance level and record similar movements on the upside as other cryptocurrencies is attributable to the dominant cryptocurrency’s trend over the past few months.
From June to August, major cryptocurrencies like Ripple and Ethereum recorded 40 to 50 percent losses against the US dollar while Bitcoin dropped by less than 10 percent. Extreme oversold conditions as a result of intensified movements on the downside caused Ripple, Ethereum, and the rest of the market to initiate a strong rally.
According to Mike Novogratz, at Yahoo Finance’s second annual “All Markets Summit,” Michael Novogratz, former macro hedge fund manager and billionaire investor, the bear market of crypto has come to an end with Bitcoin bottoming out in the lower region of $6,000.
Novogratz stated that in December of 2017, the crypto market demonstrated a classic speculative mania but throughout the past eight months, the market has endured a major correction and achieved a classic bottom in recent months.
If bottom has been established by Bitcoin last week in the low region of $6,000, as long as the volume of the crypto exchange market can be maintained in the weeks to come, it is likely that most cryptocurrencies will recover further in a strong short-term rally.
In the past seven days, the volume of the crypto market has increased from $10 billion to $17 billion, with Bitcoin’s volume rising from $3.3 billion to $5.4 billion. The abrupt rise in the prices of XRP and ETH has created strong momentum for the market, which is expected to extend throughout the month.
From here, a gradual rally after a short-term corrective rally is more likely than an exponential increase in price. Previously, Japanese analyst Masayuki Tashiro said:
“Personally I am bullish, and by the time the outline of the regulations will come together in October, those investors who will feel safer will come back. I hope things won’t get as overheated as last year, but I believe BTC can win back the value of 1 million yen (9,020$) in range.”
Based on the price prediction of Tashiro, and the momentum of the market, a price target of $9,000 by the end of October could materialize. With positive developments in the US crypto market and optimistic progress in regulating crypto in the Japanese and South Korean market, investors expect the strong short-term rally to continue.
Featured image from Shutterstock. Charts from TradingView.
Last modified: March 4, 2021 3:42 PM