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The cryptocurrency market was trading in the green today as the market capitalization of all cryptocurrencies climbed by 0.80% to $1.06 trillion. Today, certain cryptocurrencies are experiencing a slight decline, while others are increasing.
Following the most recent hack that exposed more than 7,000 wallets, Solana is one of the few exceptions. Today’s gains in both Bitcoin and Ethereum have been significant. Although, since it is a bear market rally, the upward momentum will likely only last a short while.
Additionally, leading exchange addresses are holding more cryptocurrency, and the market is approaching an inflection point that will determine the direction of future price movement.
Despite the fear surrounding the Fed rate hike and the recession, the cryptocurrency market is on the upswing. Although there were some concerns raised by Nancy Pelosi’s travel to Taiwan, they have now subsided. Today’s crypto market is experiencing a general market rally.
The increase in the cryptocurrency market will last just a short time, says expert CryptoBirb. Only 7% of cryptocurrencies are currently trading above the 200-day moving average, compared to 80% above the 50-day moving average. It denotes a bear market rally, the part of the bear market when prices increase. He predicts that the market will rise for a while before likely correcting.
Technicals paint a bullish signal
The Ethereum Top Exchange vs. Non-Exchange Holdings data demonstrates that as traders sell their holdings, the amount of Ethereum held by the top exchanges increases, according to the on-chain platform Santiment. Since the beginning of 2022, dealers have sold a sizable portion of their holdings to major exchanges.
For the first time since May 2021, the top 10 exchange addresses currently contain more than 7 million Ethereum. Top ETH exchange holdings falling will be a positive indicator for the price of Ethereum.
“Ethereum has seen its supply held by top exchange addresses rise, which makes sense with traders dumping their holdings onto large exchanges during the 2022 slide. Watch for a decline in top ETH exchange address holdings as a bullish signal.”