Market Shows Renewed Momentum Despite Major Resistance Levels
The crypto market has experienced a rebound after a gloomy day yesterday. The total market capitalization has increased by 2% over the past 24 hours, demonstrating renewed momentum. Bitcoin (BTC) also recorded a rise of 1%, while DEXE particularly stood out with a 10% jump, becoming the day’s best performer.
Although the general sentiment remains cautious, the market seems to have regained some momentum. However, technical analyses reveal that significant resistance levels stand in the way of a more decisive recovery. The challenge will be to break through these levels sustainably to allow the upward trend to continue.
Mixed News Stirring the Crypto Sector
In today’s news, two contrasting elements stand out. On one hand, rumors have circulated regarding a potential XRP ETF in Japan, after SBI Holdings mentioned theoretical plans for crypto ETFs. Although no concrete action is planned in the short term, this illustrates the ongoing regulatory progress in this area.
🇯🇵Japan's $214B SBI Holdings filed for two crypto ETFs 1️⃣ Direct BTC & XRP exposure 2️⃣ Gold + crypto (incl. XRP)
On the other hand, Tornado Cash founder Roman Storm has been found guilty of operating an unauthorized money transfer business. He faces up to 5 years in prison and a heavy fine, a setback for decentralized finance.
Caution Advised : Can Bitcoin Reach $120,000 ?
Despite this renewed strength, the crypto market remains subject to opposing forces. Bitcoin is struggling to break through a key resistance level, while certain altcoins like DEXE are showing more favorable momentum.
The resistance zone between $116,000 and $118,000 for Bitcoin will be worth watching, as smart money could use it as a counterparty while retail investors might be seized by FOMO.
Meanwhile, SOL faces a similar zone between $173 and $181. XRP will need to exceed $3.07 to attempt reaching a new peak. Finally, Ethereum has been eyeing the $4,000 mark for several weeks.
In this context, savvy investors will need to exercise discernment and patience. Opportunities exist, but caution is warranted in the face of potentially high volatility. By skillfully leveraging technical analysis and closely following sector developments, it will be possible to capitalize on upcoming market movements.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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