28 Jan , 2022 By : monika singh
New Delhi: The cryptocurrency market staged a quick recovery on Friday as traders saw some value at lower levels.
Hawkish comments from US Federal Reserve Chairman Jerome Powell spooked the traders a day before. The central bank will raise interest rates more than four times this year.
Barring the US dollar-pegged Tether, Dogecoin and Terra, all other seven out of top-10 digital tokens were trading higher during the trade. Bitcoin jumped 3 per cent and BNB 6 per cent.
The global crypto market cap advanced about 3 per cent to $1.66 trillion. However, the total crypto market volume tanked more than 24 per cent to $79.06 billion.
The recent fall in Bitcoin indicates that cryptocurrencies are no longer a stand-alone risk asset and are reacting to changes in global factors. On average, SHIB (Shiba Inu) has more buyers than sellers, indifferent to the rising or falling prices, said WazirX Trade Desk.
"A rise or fall is just a question of which side of demand and supply is heavier and nothing to be alarmed about," it added. "Many people consider Bitcoin to be a hedge against inflation because of its restricted supply, which is claimed to provide an advantage over currencies whose supply may constantly be increased."
The upside trend of Bitcoin remains limited given the intermediate-term downtrend. The second-biggest cryptocurrency by market cap, Ethereum, has gained more than the previous day, said Edul Patel, CEO and Co-founder of Mudrex.
"Other major altcoins also showed some decent growth over the past 24 hours. The cryptocurrency is trading in a tight range on intraday charts, being neutral over the short term," he added.
Meta Platforms Inc's digital currency venture Diem Association is winding down and selling its technology to California-based Silvergate Capital Corp for about $200 million, the Wall Street Journal reported, citing a person familiar with the matter.
Starting from fan tokens or digital trading cards and collectables backed by non-fungible tokens (NFTs) to promoting blockchain-based ticketing systems and decentralizing the sports ecosystem, the traditional sports world is transforming slowly but surely, and blockchain is at the centre of it all.
Tech view by BuyUcoin
Recently, ATOM/USD formed a Head and Shoulders pattern. This pattern usually indicates a reversal in trend where the market makes a shift from bullish to bearish or vice versa. On 20th Jan ATOM faced a decline of 30% from $40 (left shoulder) alongside a drop in the broader crypto market.
Even though Atom outperformed in the recent crash and recovered its price from $27 to $34 as investors bet on the further upside for the high-speed blockchain, making the token among the few gainers during the sharp decline in crypto recently.
The coin's trading volume has increased by 41% while its total market cap is about $9 billion, putting it in 17th position overall. The ATOM/USD pair has rebounded sharply off the 200-day SMA, suggesting that bulls are guarding this level. The RSI indicator shows that ATOM/USD currently tracks at around 50.
This means it’s neither oversold nor overbought. It could be shifting in any direction. The buyers may try to push the price to $40. A break and close above this line will suggest a possible change in trend. The pair could then rally to the crucial overhead resistance at $44.80.