Why is the Crypto market booming today?
The total crypto market cap (TOTAL) and Bitcoin (BTC) volatility have seen some recovery over the past 24 hours, continuing to influence price action. Among altcoins, Stellar (XLM) turned out to be the best-performing asset, posting a 31% rally over the past day.
In today's news:
FLOKI DAO approves 16.3 billion tokens for EU-based ETP using buyback wallet The ETP, scheduled for Q1 2025, will offer European investors exposure to Mem Coin. Despite the FCA's rules, only 54% of the FCA's 1,702 alerts between October 2023 and October 2024 lead to removals of illegal cryptocurrency advertising in the UK. Many promotions remain active, highlighting enforcement challenges.
The crypto market has reached resistance
The total crypto market cap rose by $84 billion, surpassing the $3.28 trillion resistance level. However, macro-financial cues remain subdued, leaving room for cautious optimism. Investors closely monitor broader trends to gauge continued bullish potential.
If strong signals emerge, the market cap of $3.28 trillion could be reversed to a support level. This move sets the stage for a rise to $3.49 trillion, indicating a strong market recovery and renewed investor confidence in the crypto space.
A failure to breach $3.28 trillion could lead to a retracement to the $3.10 trillion support level. Such declines dispel bullish sentiments and highlight the need to maintain critical levels to avoid further losses in market value.
Bitcoin closes to find critical support
Bitcoin is currently trading at $94,949, below the critical resistance level of $95,668. Breaking this barrier is essential for BTC to regain the $100,000 milestone, a key psychological and technical target for investors.
A hold above the $93,625 support level is crucial to create enough momentum for Bitcoin to flip the $95,668 support. This move confirms the continuation of the bullish trend and reinforces market expectations for further gains.
On the other hand, if Bitcoin loses the $93,625 support, the price may drop to $89,800. Such a decline would invalidate the bullish thesis and suggest a resurgence, dampening investor sentiment. Maintaining key support levels is essential for Bitcoin to move higher.
Stellar ensured a sharp rally
XLM surged 31%, bringing the price to $0.43, where $0.41 crossed a strong support floor. This level has historically prevented a fall, and a similar result is expected this time around, providing stability to the altcoin's current position.
Holding support above $0.41 would allow XLM to rise to $0.48, recovering recent losses. Such a move would strengthen momentum and highlight the altcoin's strength despite market volatility.
However, a break below the $0.41 support level could send XLM to $0.35. This decline defies the prevailing view and wipes out a large portion of the 31% gain, highlighting the importance of holding key support levels.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
