Crypto market recovers, Solana, Cardano register strong gains

Crypto market overview: The crypto market has seen a steady recovery in the last 24 hours with the total market capitalisation witnessing a 2.25 per cent surge and Bitcoin gaining close to 3 per cent to $42,176. On the other hand, other leading altcoins have also seen a strong uptick with Solana gaining more than 6.6 per cent while Cardano rising more than 7.7 per cent in the last 24 hours. 

Bitcoin has made a recovery, reaching $43,000 and showing signs of potential further increase if bulls can push it to $44,700. A reversal by bulls may indicate a range-bound situation, with the current support at $41,950, Edul Patel, Co-Founder of Mudrex suggests. 

The Crypto Fear and Greed Index has also seen a strong uptick with 6 points gain to reach 61 points. 

Image credit: Alternative.me

Sharing the insights into the market, CoinDCX Research Team said, “In the last 24 hours, the crypto market has witnessed a positive trend, with a gain of more than 2.5 per cent. BTC remains on an uptrend, marking a 3 per cent upward movement and approaching the key resistance level at $44,500. BTC dominance has been consistently increasing over the past few days.”

“ETH has shown signs of relief, registering a gain of more than 2 per cent in a day and reclaiming the 50EMA Daily. However, further confirmation is needed to establish a bullish trend. Meanwhile, ETH dominance continues to decline, indicating a flow of funds away from ETH,” added CoinDCX. 

Highlighting the trendline support for Bitcoin at $38,500, CoinSwitch Markets Desk said, “The last week showed Bitcoin net outflows of $500 million from the ETF products that went live recently. However, the seems to be settling down. Analysts have been predicting this move is largely due to the expectation of the Fed to continue their rate pause which will be announced this week.”

“Another popular altcoin SOL is also on the move again as Solana DEXs briefly flipped Ethereum trading volumes with rolling 24-hour volume on Solana crossing $700 million compared to $698 million on Ethereum as per the data from DefiLlama. Some analysts are predicting another run might be due for SOL as the recent corrective wave seems to have settled,” added CoinSwitch. 

Discussing the impact of the Fed’s interest rates on Bitcoin price movement, Rajagopal Menon, Vice President, WazirX said, “Market sentiments are on edge as major events, including the Fed's interest rate decision and US January unemployment data, loom. Bitcoin saw gains after Tether issued $1 billion in USDT, but the upcoming announcements could sway prices. A predicted rate cut may favour bulls, while unchanged rates could lead to a bearish sentiment. Bitcoin's Bollinger Bands suggest early signs of decreasing volatility, hinting at potential stability.” 

Sudeep Saxena, Co-founder, CoinGabbar said, “Bitcoin surpassed the $43,000 mark on Monday, marking its return to this level after a two-week hiatus. Investors are contemplating the likelihood of the Federal Open Market Committee opting for another rate pause at this week's meeting, with the CME FedWatch tool indicating a high probability (97.9 per cent) of the Fed funds rate staying within the current target range of 5.25 per cent–5.50 per cent.” 

Sharing the key targets with Republic Business, Vikram Subburaj, CEO, Giottus said, “Bitcoin experienced a strong start to the week, with its price regaining support at $43,000. Profit-taking from Greyscale’s GBTC has ceased with the trust registering 114,367 BTC withdrawals overall, equivalent to $4.8 billion. The price is currently oscillating between 50-day EMA and 100-day double EMA, implying a period of consolidation before retesting upper limits at $44,000. The altcoin market also experienced a surge with Solana and Cardano gaining 7 per cent, while Ethereum, Ripple and Avalanche had moderate gains of 2 per cent -3 per cent.” 

“Key upside targets for altcoins today: Ethereum ($2,375), Solana ($105), BNB ($320), Avalanche ($38) and Cardano ($0.58),” added Subburaj.