Markets
Markets Barely Move Despite a Series of Bullish Events; Where are they going too?
Last week can be considered one of the bullish weeks as price volatility spiked noticeably. This caused a huge shift in attention from market participants, who seemed hopeful after a series of events. Despite this, the prices of major tokens appear to have remained stuck within a range and are unable to overcome interim resistance. This has raised concerns and questions about whether the markets have lost momentum or just remained calm ahead of the next price action.
The long-awaited ETH ETF was approved last week, which boosted the price of Ethereum along with the entire crypto market. Additionally, Donald Trump has jumped in favor of the crypto space and advocates the need for “self-custody.” Additionally, the US passed ‘FIT21’, which established a regulatory framework for US crypto markets and also clarified whether cryptocurrencies are securities or commodities. Furthermore, the House also passed a bill to stop the FED from creating the CBDC.
Does this portray a diversified plan of action for the next rally? To know this, let’s look at the price action of the entire market or market capitalization.
After recovering from its lowest level of 2 billion dollars, the market capitalization maintained a significant recovery. The levels are now consolidating within a range after facing rejection from the annual high near $2.6 trillion. From a broader perspective, it may seem like slow behavior, but as the technical data suggests, the bulls are building momentum to trigger a decent recovery in the future. The RSI is rising, but the MACD is showing falling buying pressure. However, it still remains in the bullish range, suggesting that a further recovery may be on the horizon.
Collectively, crypto markets remain sluggish and trade in tight regions for a few more weeks. Additionally, levels are expected to see major price action in the first few days of June, which could help markets close the semi-annual trading session on a bullish note. The maximum increase that can be expected could be 2.5 or 2.6 billion dollars by the end of the first half of 2024, while the next action plan can be decided based on the volume induced.