Market
3 Signals That Suggest A Crypto Market Top
As Bitcoin hovers around $69,000, the crypto community buzzes with speculation about a potential market peak. Notable indicators suggest the market may be nearing a climax.
The crypto market has been choppy since Bitcoin hit an all-time high of around $73,500 in March. Since then, many have speculated if the market top is near.
Celebrity-Endorsed Meme Coins: A Double-Edged Sword
A pseudonymous crypto investor, ‘Gold,’ talks about three top signals:
- Celebrities began to create and endorse meme coins.
- The crypto community and developers are creating millions of new meme coins.
- The social media has been flooded with PnL screenshots.
The crypto space has recently seen an increase in celebrity involvement, with figures like Caitlyn Jenner and Iggy Azalea launching their meme coins. This resurgence mirrors past cycles, where celebrity endorsements often preceded significant market corrections.
Renowned crypto analyst Miles Deutscher discusses the nuanced impact of these endorsements.
“Celebrities (love or hate them) clearly command one thing: Attention. And this attention is vital for the health of the crypto economy. With much of this attention being directed to meme coins, this sector is the standout beneficiary. However, this comes with a trade-off – as not all attention is created equal,” Deutscher said.
This trend raises questions about the real value celebrities add to the crypto ecosystem versus the potential for quick profits at the expense of uninformed followers. Historical data suggests that the involvement of celebrities in crypto, while initially boosting market activity and coin liquidity, could also signal approaching market tops, as seen in the cycles of 2017 and 2021.
“Based on this, we can conclude that when celebrities start promoting cryptocurrencies, the market usually experiences a final leg up before reaching a local top. In any case, the sample size is small, and therefore the edge is limited. Nonetheless, it is interesting,” crypto influencer – Capo of Crypto said.
Read more: Crypto Scam Projects: How To Spot Fake Tokens
Meme Coin Mania: Indicator of Market Euphoria
Furthermore, the explosion of meme coins might be another red flag. A staggering increase in new meme coins, as reported by a Dune dashboard from Coinbase executive Conor Grogan, highlights the frenzy.
Over one million meme coins were created in April alone, surpassing the total number of tokens created on the Ethereum blockchain since its inception. This spike reflects extreme market greed, a classic sign of a market top.
This is because many developers try to make quick profits by creating meme coins. Moreover, some bad actors also conduct rug pulls through meme coin launches.
Crypto investor Andrew Kang offers a counter perspective, suggesting that meme coins now represent a mature sector that leads rather than follows the market. However, the general consensus remains that such exponential growth in meme coin production is a precursor to a market downturn.
“Meme coins pumping are no longer indicators of local tops because memecoins are no longer the last rung of desirability as a sector. In fact, they are the sector that new capital allocators believe in the most. Memes have and will lead the market,” Kang argued.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
PnL Screenshot Flood: A Symptom of Overconfidence
Additionally, the third indicator is the prevalence of PnL screenshots across social media platforms, illustrating widespread profitability among traders. While this might seem positive, historically, markets tend to reverse when such euphoria reaches its zenith.
The ease of securing profits during these periods often doesn’t last, and the overwhelming display of gains could well be the setup for a subsequent fall.
For instance, year-to-date, over 90% of Bitcoin investors are ‘In the Money,’ meaning they are profiting from their holdings. Historically, the market has reversed after a considerable period of such massive profitability.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Each of these signals—celebrity-driven meme coins, the proliferation of meme tokens, and the public display of financial gains—might not alone dictate market behavior. However, their simultaneous occurrence should give both retail and institutional investors pause.
Past patterns have shown that celebrity involvement and meme coin mania correlate with peak market phases followed by sharp declines. Observing these indicators in conjunction might help investors anticipate and potentially mitigate risks associated with an impending market top.
However, Gold also notes that some significant bullish catalysts could invalidate the speculations of a market top. Hence, investors should consider these nuances and make their investment decisions accordingly.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Dogecoin (DOGE) Shows Renewed Energy: Rally Incoming?
Dogecoin is consolidating gains above the $0.380 resistance against the US Dollar. DOGE is holding gains and eyeing more upsides above $0.400.
- DOGE price started a fresh increase above the $0.3750 resistance level.
- The price is trading above the $0.3800 level and the 100-hourly simple moving average.
- There was a break above a short-term contracting triangle with resistance at $0.390 on the hourly chart of the DOGE/USD pair (data source from Kraken).
- The price could continue to rally if it clears the $0.400 and $0.4080 resistance levels.
Dogecoin Price Eyes More Upsides
Dogecoin price remained supported above the $0.350 level and recently started a fresh increase like Bitcoin and Ethereum. DOGE was able to clear the $0.3650 and $0.3750 resistance levels.
The price climbed above the 50% Fib retracement level of the downward move from the $0.4208 swing high to the $0.3652 low. Besides, there was a break above a short-term contracting triangle with resistance at $0.390 on the hourly chart of the DOGE/USD pair.
Dogecoin price is now trading above the $0.3750 level and the 100-hourly simple moving average. Immediate resistance on the upside is near the $0.3950 level or the 61.8% Fib retracement level of the downward move from the $0.4208 swing high to the $0.3652 low.
The first major resistance for the bulls could be near the $0.400 level. The next major resistance is near the $0.4080 level. A close above the $0.4080 resistance might send the price toward the $0.4200 resistance. Any more gains might send the price toward the $0.4500 level. The next major stop for the bulls might be $0.500.
Are Dips Supported In DOGE?
If DOGE’s price fails to climb above the $0.400 level, it could start a downside correction. Initial support on the downside is near the $0.3850 level. The next major support is near the $0.3750 level.
The main support sits at $0.3550. If there is a downside break below the $0.3550 support, the price could decline further. In the stated case, the price might decline toward the $0.3200 level or even $0.300 in the near term.
Technical Indicators
Hourly MACD – The MACD for DOGE/USD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for DOGE/USD is now above the 50 level.
Major Support Levels – $0.3850 and $0.3750.
Major Resistance Levels – $0.4000 and $0.4200.
Market
Solana Hits New All-Time High After 3 Years
On Friday, Solana (SOL) soared to a new all-time high (ATH), now trading at approximately $261. This breakthrough surpasses its previous peak set in November 2021.
Solana’s rise to a new ATH marks an increase of over 32 times from its lows recorded in December 2022.
Solana Hits All-Time High as Gary Gensler Plans Resignation
Solana’s path to this new high has been anything but smooth. After reaching its previous high in 2021, the platform faced a downturn in 2022 amid a broader crypto bear market, further exacerbated by technical issues and network downtimes.
The collapse of FTX in November 2022 pushed Solana’s price down to around $8.
However, Solana has since made a remarkable recovery, increasing more than 32-fold from its low. Now, Solana enthusiasts believe that SOL could eventually outpace Ethereum (ETH) in market capitalization.
“Solana has been at an all-time high by market cap for a while actually. Now, we’re finally in price discovery. The flippening is coming,” Birch, the founder of PathCrypto, said.
The surge in Solana’s market value coincides with the news of SEC Chairman Gary Gensler’s planned resignation, slated for January 20, 2025, as Donald Trump assumes office.
Known for his strict regulatory stance on cryptocurrencies, Gensler’s departure signals a potential shift toward a more crypto-friendly administration. Consequently, this political change is stoking speculations about the approval of a Solana exchange-traded fund (ETF). According to Fox Business journalist Eleanor Terrett, the SEC has begun engaging with issuers to explore the possibility of a Solana ETF.
“Talks between SEC staff and issuers looking to launch a Solana spot ETF are “progressing” with the SEC now engaging on S-1 applications. Recent engagement from staff, coupled with the incoming pro-crypto administration, is sparking a renewed sense of optimism that a Solana ETF could be approved sometime in 2025,” Terrett claimed.
Previous efforts to launch a Solana ETF were stalled by regulatory roadblocks, often stopping early in the process. However, the changing political environment and the SEC’s increased openness have reignited hopes within the crypto community. Recent filings for a Solana ETF by Canary Capital and BitWise reflect a growing interest and anticipation for regulatory approval.
Despite these encouraging developments, the odds of a Solana ETF approval in 2024 remain low, with Polymarket estimates placing it at around 4%.
Meanwhile, the crypto community is also closely watching Bitcoin as it approaches the highly anticipated $100,000 mark. On Friday, Bitcoin recorded a new high of about $99,300. This milestone is viewed as a pivotal moment for Bitcoin and could impact other cryptocurrencies, including Solana.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
XRP Price 25% Rally: Breaking Barriers and Surpassing Odds
XRP price rallied above the $1.15 and $1.20 resistance levels. The price is up over 25% and might rise further above the $1.420 resistance.
- XRP price started a fresh surge above the $1.20 resistance level.
- The price is now trading above $1.250 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trend line with resistance at $1.1400 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is up over 25% and it seems like the bulls are not done yet.
XRP Price Eyes Steady Increase
XRP price formed a base above $1.050 and started a fresh increase. There was a move above the $1.150 and $1.20 resistance levels. It even pumped above the $1.25 level, beating Ethereum and Bitcoin in the past two sessions.
There was also a break above a key bearish trend line with resistance at $1.1400 on the hourly chart of the XRP/USD pair. A high was formed at $1.4161 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $1.0649 swing low to the $1.4161 high.
The price is now trading above $1.30 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $1.400 level. The first major resistance is near the $1.420 level. The next key resistance could be $1.450.
A clear move above the $1.450 resistance might send the price toward the $1.50 resistance. Any more gains might send the price toward the $1.550 resistance or even $1.620 in the near term. The next major hurdle for the bulls might be $1.750 or $1.80.
Are Dips Supported?
If XRP fails to clear the $1.420 resistance zone, it could start a downside correction. Initial support on the downside is near the $1.3350 level. The next major support is near the $1.2850 level.
If there is a downside break and a close below the $1.2850 level, the price might continue to decline toward the $1.240 support or the 50% Fib retracement level of the upward move from the $1.0649 swing low to the $1.4161 high in the near term. The next major support sits near the $1.20 zone.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $1.3350 and $1.2850.
Major Resistance Levels – $1.4000 and $1.4200.
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