Synopsis
The cryptocurrency market has been consolidating for the last couple of weeks. The total market capitalization has been hovering around the significant psychological threshold of $1 trillion since the middle of January, bearing a striking resemblance to the trend observed during the months of November and December 2022. As momentum continues to grow, there is a likelihood of the total market capitalization of cryptocurrencies reaching an inflection point.
Key Observations
The expiration of BTC futures contracts worth over $11 billion suggests that market participants exercised caution despite the relatively lower open interest. This observation is particularly significant during a monthly expiry, indicating that the overall market sentiment is not pessimistic. On the contrary, a decisive break above the critical $1.18 trillion threshold could catalyze a transformative shift in the cryptocurrency market.
Analysis
The current consolidation phase is reminiscent of the one observed during November and December 2022, which lasted for a longer duration. It is interesting to note that during this consolidation phase, the total crypto market cap has remained relatively stable around the $1 Trillion mark. It indicates that the market is taking a breather before the next big move.
A lot of speculation is doing the rounds with regards to the upcoming Shanghai Upgrade, which will unlock around 16 million staked ETH. However, since that accounts for roughly about 14% of the total supply of ETH, we are not expecting any massive selloff. The traded volumes during the week of April 12th is likely to be interesting.
Deep Dive Into the Top Gainer and Loser
We closely analyze the performance of the top 50 coins by market capitalization and take a closer look at the best and the worst performers of the week.
Hedera Hashgraph (HBAR) up by 19.27% ⬆️
Fresh Supply Co. (FSCO), a significant user of Mastercard Provenance, has recently announced its transition from Mastercard’s private blockchain to the public Hedera network. This decision marks another significant partnership for the Hedera network as it continues to forge strategic relationships with prominent industry players. By enabling secure and transparent supply chain solutions, the Hedera network is positioning itself as a viable option for businesses seeking to leverage blockchain technology.
This latest partnership is a testament to the growing recognition and adoption of the Hedera network and its potential to revolutionize how businesses operate. And the same can be noticed from the rapid increase in price for Hedera’s native token, HBAR.
Opinion: Although the fundamentals look solid, HBAR has already broken the upper band of the Bollinger Bands. This token is on a steady rise, but it already seems to be in the overbought zone. In such a scenario, the token might show a quick reversal in the direction of its movement.
OKEx utility token (OKB) down by 6.66% ⬇️
OKEx has recently partnered with Alchemy Pay to integrate a fiat on-ramp facility. However, other than that OKEx has not made any major headlines lately. The lack of activity can be seen in the trading volume of its utility token, OKB, which seems to be taking a slight toll on its price action.
Opinion: With a key support level existing just below the $41 mark, and the token remaining on a downtrend, it might need some solid push to gain positive momentum. A short-term consolidation seems quite likely for the utility token.
Conclusion
The cryptocurrency market has been consolidating around the $1 trillion mark, bearing a resemblance to the trend observed during the months of November and December 2022. As momentum continues to grow, there is a likelihood of the total market capitalization of cryptocurrencies reaching an inflection point.
The upcoming Shanghai Upgrade has generated speculation, but the unlock of 16 million staked ETH is not expected to result in a massive selloff. HBAR has seen a rapid price increase but may be in the overbought zone, while OKB’s lack of activity has resulted in a slight price toll. Investors should exercise caution and conduct thorough research before making investment decisions.
Disclaimer: Please note that the content contained in this crypto market research report is for informational purposes only and should not be considered financial advice. We recommend seeking professional financial advice before making any investment or trading decisions. This report should be considered a research report, not financial advice.
