The cryptocurrency market has received a lot of attention recently as the prices of popular tokens have soared. While the price of Bitcoin continues to move sideways, other altcoins have risen significantly. Moreover, BTC dominance continues to decline, suggesting that the altcoin may continue its healthy upward trajectory going forward. However, looking at the current market trend, the cryptocurrency market appears to be issuing a big warning as shown below.
Various Memecoins are attracting attention
Memecoin has been an interesting part of the cryptocurrency market as it has shown extreme volatility in a very short period of time. Top memecoins like Dogecoin and Shiba Inu chose to trade with minimal interest, while newly launched tokens like BONK saw massive rallies that outperformed PEPE.
Therefore, this suggests that market participants are now less patient in taking profits as they expect to make huge profits from these tokens. Moreover, they tend to post ‘crazy memecoin profit/loss’ which suggests that newbies or novices are looking for quick profits rather than sustained profits.
Solana, the best performing company, revealed its weaknesses
Up more than 1000% from a low of about $9.97, Solana prices have hit a new yearly high above $126. This rise has driven tremendous liquidity, with market capitalization rising from less than $300 million to more than $50 billion. However, the price is facing significant bearish movement after hitting highs and this is a major concern at the moment.
After recording candles for almost 6 consecutive days, SOL price experienced noticeable upward pressure and hit lows near $100. Although the price defended the support line, the bulls are unable to overcome the important resistance level at $115. Therefore, the currently weak Solana rise is sending a big warning to the market.
Strongest player, Porygon does not continue to show strength
Polygon has predicted itself as one of the strongest players since the start of the 2021 bull market. Despite the bears squeezing out more than 85% of the gains, they bounced back strongly, recovering more than 60% of their losses in a matter of months. The price of MATIC has tried and failed to rise above $1 several times.
MATIC price has surged back above $1 in recent price action after undergoing a parabolic recovery. Volumes, which are still bullish, continue to decline significantly. This weakness could point to the bulls’ inability to sustain a sustained uptrend, which in turn could mark the uptrend as a fakeout.
Therefore, annual closing prices can be considered very important. Because a strong close can ultimately destroy the bearish narrative. However, if the market remains consolidated through the end of the year, different trends can be expected over the next few days.