The entire crypto space was filled with bloodshed with the market crash that drained out more than 50% of the gains acquired in 2021. Despite a decent recovery, many assets still struggle to reach the nearest resistance levels. No doubt some assets like Polygon (MATIC) showcased extreme tendency for a fastrack recovery, the other assets still tremble to sustain above certain levels.
Bitcoin price, on which most of the assets’ rally is dependent, gets rejected at $40K multiple times. This indicates that the bulls are still not much active, waiting for the price for a greater consolidation. Yet the assets hitting their current ATH may take some more time as predicted by a popular analyst.
Lark Davis, has also cautioned to be mentally prepared for the current phase as the assets might have yet another roller coaster ride before reaching ATH. In such a case one can incur more losses than the gains he accumulated in 2021. And hence the current fluctuating phase needs to be stabilized and till then the crypto space needs to maintain calm.
Meme Tokens Flourish Amid Crash
On the other hand, the global market cap is depleting at a greater pace, dragging the Bitcoin market cap below $700 billion. Ethereum’s market cap also reduced below $300 billion. Indicating the shift of focus of the traders on yet another platform.
As the many new tokens, specially ‘Meme tokens’ are entering the space every new day. And hence they are absorbing much more trading volume than the popular and primitive cryptos. Tokens like SHIB price, SAFEMOON price, and many more are slowly expanding their presence. This may impact the rally of the dominant cryptos and hence ATH seems to be very long from here.