The recovery in the cryptocurrency market continues, with most assets primed for a recovery and posting solid gains over the past three days. However, some cryptocurrencies definitely need some extra help.
The return of the Shiba Inu
Coins and meme tokens were among the first victims of the latest market disaster: SHIB lost over 30% of its value, Doge’s performance negated 80% of the rally we saw earlier, and even smaller coins suffered double-digit losses.
However, over the past few days, Shiba Inu has been deliberately trying to get back into the pre-FTX trading range, but the lack of trading volume in the market shows a bleak outlook for the token.
Over the past two weeks, Shiba Inu’s volume profile has been descending, showing a gradual outflow of funds from the token that will most likely lead to a corresponding price performance.
Various social indicators show a lack of risk appetite among investors. Such a trend will most likely prevail in the market until major assets like Bitcoin and Ethereum enter upward trends and move away from multi-month lows.
From a technical point of view, nothing prevents Shiba Inu from entering recovery mode. The nearest resistance level on the daily chart of the asset is located above the $0.00001 threshold, and the relative strength index suggests that SHIB is close to being oversold.
Altcoins brace for a rebound
As Shiba Inu struggles to keep pace with the rest of the market, assets like Chainlink are reaching the lower range of their trading channels and gearing up for a rebound higher.
Over the past 10 days, LINK struggled against the existing selling pressure in the market and was unable to break the downtrend despite rallying across different cryptocurrencies. The trading volume also suggests that LINK is not the first choice for investors today.
As for Ethereum, Lido Finance stood out from the rest of the market with strong gains over the past couple of days. The main reason for this is the rising yield of staking on Ethereum and a sudden spike in the number of validators.
Considering the fact that Lido Finance remains one of the largest holders of Ethereum in the market, it’s no surprise that investors are choosing it as their primary means of gaining exposure to post-merger Ether.
However, the lack of positive factors around the cryptocurrency market and the lack of clarity around the FTX situation caused a further correction which pushed the price of most digital currencies back to their lows and even canceled some gains they experienced a few days ago.
Today, the total cryptocurrency market capitalization is currently sitting at $834 billion after hitting $850 yesterday. Most experts believe that the current trend will continue until the Fed announces its decision at yet another FOMC meeting regarding the country’s key rate.