Meme tokens and coins struggle to recover after massive market crash, but there’s some hope
The recovery of the cryptocurrency market continues, with most assets set up for a recovery and seeing solid gains in the last three days. However, some cryptocurrencies certainly need additional help.
Shiba Inu’s comeback
Meme coins and tokens were among the first victims of the most recent market catastrophe: SHIB lost more than 30% of its value, Doge’s performance negated 80% of the rally we saw previously, and even smaller coins faced double-digit losses.
However, in the last few days, Shiba Inu has been deliberately trying to get back to the pre-FTX trading range, but the lack of trading volume on the market shows grim prospects for the token.
For the past two weeks, Shiba Inu’s volume profile has been descending, showing a gradual outflow of funds from the meme token that will most likely lead to a corresponding price performance.
Various social indicators show a lack of risk appetite among investors. Such a tendency will most likely prevail on the market until major assets like Bitcoin and Ethereum enter ascending trends and move away from multi-month lows.
From a technical perspective, nothing keeps Shiba Inu from entering recovery mode. The closest resistance level on the daily chart of the asset is located above the $0.00001 threshold, and the Relative Strength Index suggests that SHIB is close to being oversold.
Altcoins are setting up for bounce
While Shiba Inu is struggling to keep pace with the rest of the market, assets like Chainlink are reaching the lower range of their trading channels and setting up for a bounce upward.
In the last 10 days, LINK has been struggling with the existing selling pressure on the market and could not break the downtrend despite a recovery on different cryptocurrencies. The trading volume also suggests that LINK is not the top pick among investors today.
As for the top picks, Ethereum and Lido Finance distinguished themselves from the rest of the market thanks to solid gains in the last two days. The main reason behind it is rising staking yield on Ethereum and a sudden spike in the number of validators.
Considering the fact that Lido Finance remains one of the biggest holders of Ethereum on the market, it is not surprising that investors choose it as the main way of receiving exposure to the post-Merge Ether.
However, the lack of positive factors around the cryptocurrency market and the lack of clarity around the FTX situation caused yet another correction that pushed the price of most digital currencies back to their lows and even negated some of the gains they saw a few days ago.
At press time, total crypto market capitalization is currently sitting at $834 billion after reaching $850 yesterday. Most experts believe the current tendency will continue until the Fed announces its decision on yet another FOMC meeting regarding the key rate in the country.