The biggest cryptocurrency rally in 2022 these days
The cryptocurrency market has managed to recover a sizable share of the losses incurred in recent weeks, with Bitcoin currently heading towards the € 40,000 mark. Bitcoin’s price has recovered around 20% in the past seven days, but is still down around 10% since the beginning of the year.
Overall, the cryptocurrency market gained around 15% from last week, bringing the total cryptocurrency capitalization to over € 1.750 billion. The Crypto Fear & Greed Index rose to 54/100, demonstrating neutral sentiment. Last week the score of 28/100 still signaled fear: this change suggests greater confidence among investors.
Positive news indicating an uptrend as changing market sentiment has the potential to lend further support to prices. Retail investors, in fact, tend to be more bullish when prices rise. The beginning of February appears to show that momentum is building in favor of the bulls.
Bitcoin grows to almost 40,000 euros
Market sentiment changed rapidly last Friday (February 4th) with the sudden 8% rise in the price of Bitcoin, followed by a bullish trend throughout the weekend. The same was true for the rest of the market, with some major altcoins posting double-digit gains.
Bitcoin’s price rose above its 50-day average for the first time in more than two months. The news comes after Bitcoin recorded its strongest one-day rise since October 2021. The price of BTC is consolidating around the EUR 39,000 level, where the bulls are leading much of the trade.
The weekly chart shows an uptrend after the lows of 30,000 euros, as the price of BTC has registered a higher high and low. Bitcoin successfully closed an upward breakout in the weekly highs this week, which is a strong sign of recovery.
Ethereum records a 50% gain from its January low
The altcoins followed Bitcoin’s sudden upward movement. Ethereum ended the day green, posting a gain of around 25% during the week. ETH is up 50% from its low in January and is trading at the EUR 2,800 trendline resistance level.
Memecoins are on the rise
The memecoins, led by Dogecoin and Shiba Inu, ranked among the best engines of this week’s rally. DOGE gained 20% of the market cap while Shiba was up 60% in just 7 days after breaking out of the € 0.000020 resistance level.
SHIB is currently trading close to € 0.000030 and has achieved a market capitalization of € 16 billion. Shiba Inu developers have announced a new metaverse project called Shiba Lands: digital real estate will soon be available for sale.
XRP gets a spot among the major bulls
Ripple is one of the biggest bulls in the biggest rally of the year, surging by around 50% and reaching the price of 0.8 euros. XRP has surpassed some of the major cryptocurrencies and now ranks as the sixth largest virtual currency by market capitalization. This year XRP has seen a 5% increase, despite recent sales.
Polkadot is increasing its treasury pool
The bulls pushed DOT to the EUR 20.5 trend line resistance level. DOT is trading above the EUR 13 and EUR 20 moving averages on the daily chart, suggesting control by buyers who may try to push the price above the resistance level to prolong the bullish move. Polkadot recently announced that it will allocate over € 20 million of DOT to support the development of its ecosystem and the highly anticipated Web3. This treasury pool is intended to finance projects that benefit the ecosystem, such as the Pioneers Prize program.
IOTA, + 50% in the last two weeks
IOTA continued its growth after hitting a low of € 0.62 on January 24. The price has increased by 50% and is trading around the 0.9 euro area. This area has been serving as support for several weeks and now represents a strong resistance area. The technical indicators for IOTA on the daily chart are relatively bullish, with the MACD and RSI rising.
The RSI momentum indicator has come above the 50 line on the daily chart, which is considered a threshold for a bullish / bearish trend. While the MACD momentum indicator is moving higher, it is not yet to be considered positive. The positive trend would also encourage bullish momentum.
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