Insider Look: Bitcoin Bullishness Stays Strong, But DOGE and SHIB Rally Takes a Breather

This week saw cryptocurrencies mostly moving sideways with minor changes in the price. The leading digital cryptocurrency Bitcoin and other major altcoins remained stable triggering questions as to what direction the market could go. Among major cryptocurrencies, XRP led the gains, rising 10%in the past 24 hours. Similarly, among top cryptos, Dogecoin (DOGE) and Shiba Inu (SHIB) have given back gains after a 25% rally last week, falling as much as 6% as Bitcoin (BTC) hovers above the $71,500 mark. This opens up discussions about whether investors are looking to move to emerging crypto pioneers like XRP, to newer ones like Shiba Inu (SHIB), or other cryptocurrencies.

The volume-weighted average price of trading platform Kraken has been dropping since November 8, and in the meantime, The CoinDesk 20 indeK ‘s trend movement shows a continuation of earlier trends, right from September’s topping range in the February-March growth trajectory. Large-scale players seem to have had a level of agreement on the long-term direction of the market with a slight preference towards stability. A bearish trend means a configuration where the short-term price approaches the long-term support level, while a bullish trend is shown when short-term uncertainty levels rise and show intermittent price increases before converging on the medium-term region. The key to surmounting any of these problems, either by developing new solutions or repositioning plans, may arise on Tuesday when the crypto majors are seeing little movement in their prices. These include Ether, Solana’s SOL, and other major assets ranking over the first 10 cryptocurrencies in terms of their price performance.

Wallet Activity

Welcome to our weekly cryptocurrency newsletter, where we analyze strategies and developments in the rapidly changing world of digital assets. This week saw cryptocurrencies mostly moving sideways with minor changes in the price. The leading digital cryptocurrency Bitcoin and other major altcoins remained stable triggering questions as to what direction the market could go. Among major cryptocurrencies, XRP led the gains, rising 10%in the past 24 hours. Similarly, among top cryptos, Dogecoin (DOGE) and Shiba Inu (SHIB) have given back gains after a 25% rally last week, falling as much as 6% as Bitcoin (BTC) hovers above the $71,500 mark. This opens up discussions about whether investors are looking to move to emerging crypto pioneers like XRP, to newer ones like Shiba Inu (SHIB), or other cryptocurrencies.

The volume-weighted average price of trading platform Kraken has been dropping since November 8, and in the meantime, The CoinDesk 20 index’s trend movement shows a continuation of earlier trends, right from September’s topping range in the February-March growth trajectory. Large-scale players seem to have had a level of agreement on the long-term direction of the market with a slight preference towards stability. A bearish trend means a configuration where the short-term price approaches the long-term support level, while a bullish trend is shown when short-term uncertainty levels rise and show intermittent price increases before converging on the medium-term region. The key to surmounting any of these problems, either by developing new solutions or repositioning plans, may arise on Tuesday when the crypto majors are seeing little movement in their prices. These include Ether, Solana’s SOL, and other major assets ranking over the first 10 cryptocurrencies in terms of their price performance.

Wallet Activity

Ether, Solana’s SOL, and other major tokens remaind little changed. XRP led the gains, rising 10% in the past 24 hours.

XRP Stands Out

Data shows that other major tokens ether (ETH), Solana’s SOL, BNB Chain’s BNB, and Cardano’s ADA were little changed in the past 24 hours. XRP led the pack among crypto majors with a 10% in the past 24 hours. The gains came amid a technical development announcement that would help developers provide better applications and services to users.

The CoinDesk 20 index (CD20), a liquid index of the twenty biggest tokens minus stablecoins, rose 0.73%.

Bitcoin ETFs on the Rise

Spot bitcoin ETFs crossed the $10 billion inflow mark for the first time since going live in January, BitMEX Research noted in a Tuesday post. Some market observers say this could lead to a “sell-side” crisis in the medium term should such flows continue.

“Bears can’t win this game until spot bitcoin ETF inflow stops,” said CryptoQuant founder Ki Young Ju in an X post. “Last week, spot ETFs saw netflows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by U.S. entities.”

“At this rate, we’ll see a sell-side liquidity crisis within 6 months,” Ki added.

Caution Remains Among Traders

Meanwhile, Singapore-based trading firm QCP Capital said in a Telegram broadcast on Tuesday that the bitcoin options market flashed a bullish sign for traders but expressed caution ahead.

“The volatility market continues to express bullishness in BTC as volatility remains very elevated for the calls,” QCP said. “We are wary of another washout with funding rates reaching elevated levels again, although we still expect dips to be bought up very quickly,” the firm added.

Understanding Market Indicators

Volatility is a dynamic figure that changes based on activity in the options marketplace. Funding rates are paid by leveraged traders to those on the opposite side of that trade, and the bias toward long or shorts can indicate a bullish or bearish view of the market.