Cryptocurrency markets experiencing a dive, sparking questions about recovery prospects for bullish trends.
Revised Crypto Market Analysis: Saturday, May 17
The cryptoverse took a dip this weekend, with most altcoins shedding some of their recent gains. Bitcoin, the big kahuna, dipped 0.46%, tumbling from its weekly high of $105,000 to $103,000.
Some of the biggest losers included Pi Network, which plunged a staggering 10.88%, Bonk, taking an 8.08% hit, Floki, dropping 8.64%, and Pudgy Penguins, losing 8.87%.
Bitcoin generally leads the charge in the crypto world. When it's heading up, altcoins tend to rally. But when it retreats, they follow suit. For instance, many of them surged by double digits when Bitcoin broke the $90k resistance and reached $105,900. However, Bitcoin's inability to breach the $105k resistance and retest its all-time high has triggered a sell-off among altcoins.
Investors cashing out after the recent surge could also be a factor. Some of the biggest gainers during the rally are now among the biggest laggards. For example, Bonk, which dropped 26% from its monthly low but had soared almost 200% from its lowest level in April, and Floki, up 162%, and Pudgy Penguins, skyrocketing over 330%.
Meanwhile, the broader market is on edge due to mounting global trade tensions and economic woes. Although the US and China reached a truce, they still maintain a staggering 30% tariff. Talks with Japan have stalled, and the US is teetering on the edge of a recession, with Polymarket traders putting the odds at 38%.
Even Moody's, one of the big three credit agencies, downgraded the U.S. last Friday, citing massive public debt and deteriorating fiscal policies.
Pi Network's Price Crash: Centralization Concerns Linger
With Pi Network's price nose-diving, one might wonder if the crypto market will ever recover. To predict the future, it's wise to keep an eye on Bitcoin. On the daily chart, Bitcoin is showing signs of a bullish pennant pattern, consisting of a vertical line and a triangle pattern. It's also forming a cup-and-handle pattern, a popular bullish continuation signal. As long as Bitcoin stays above the 50-day moving average, it might rally and hit its all-time high of $109,300, ushering in an uptrend among altcoins.
Chainlink Announces New Startup Program 'Build on Solana'
Despite the bearish market, Chainlink is keeping the momentum going with a new startup program called 'Build on Solana'. This initiative aims to encourage development and adoption of decentralized finance (DeFi) apps on Solana, a high-speed blockchain platform. This move could inject some positive vibes into the crypto market, potentially buoying altcoins. But let's cross our fingers and hope for the best. After all, a rising tide lifts all boats!
- Some investors cashing out after the recent surge of Bitcoin might also be selling off their altcoins, contributing to the current sell-off among altcoins.
- The bullish pennant and cup-and-handle patterns seen on the daily chart of Bitcoin could indicate a potential rally and a possible all-time high of $109,300, which might trigger an uptrend among other altcoins.
- The Tron-based Pi Network, despite its price crash, is keeping an eye on Bitcoin's movement, hoping that it will usher in a recovery for the entire crypto market.
- Chainlink's new startup program 'Build on Solana' could potentially inject some positive vibes into the crypto market by encouraging development and adoption of decentralized finance (DeFi) apps on the high-speed blockchain platform, Solana.
- The announcement of Chainlink's new startup program comes at a time when the broader crypto market is struggling due to mounting global trade tensions, economic woes, and the looming possibility of a US recession, with some Polymarket traders putting the odds at 38%.
