The crypto market is enduring a tug-of-war, stumbling and stabilizing.
Leading tokens, including BTC, ETH, and several others remain on the retreat from all-time highs. Still, blockchain games and metaverse-related tokens like GALA, MANA, and several others are rallying in the meantime.
Bitcoin Bobbles Below $60,000-Mark
Since dipping below $60,000 on November 19, Bitcoin prices haven’t been able to notch a close above the major psychological level. Despite beginning the week near $60,000, after days of bearish pressure, prices dipped to $55,600. At the same time, the bitcoin Fear & Greed Index has dropped to 42, indicating that market participants are re-entering “fear” mode.
BTC is currently trading a bit above $58,500, suggesting that short-term market sentiment has turned negative. Moreover, experts believe that trading volumes may decline this week as U.S. traders enter the Thanksgiving holiday stretch. Downward volatility during the holidays is a common theme in the cryptoverse, with similar occurrences unfolding over the last three years. Accordingly, some market analysts are forecasting that BTC will close the month near $58,728.
One of the primary reasons behind this pullback could be the recent announcement that Mt. Gox will distribute 145,000 BTC to retail investors who purchased them through the exchange between 2013 to 2015. At this point, BTC prices are 100x higher than where investors purchased them. There is a chance that many investors will liquidate their holdings, potentially catalyzing a deeper decline in prices.
Still, technical analysis suggests that BTC’s relative strength index (RSI) has been gradually rising from oversold levels since September, which may play a critical role in encouraging buyers to return. Amidst the dip, long-term BTC holders have reached a multi-year high. Data from on-chain analytics firm Glassnode indicates that long-term holders are lowering their spending as they continue to add to their positions, bringing the Spent Volume Age Bands (SVAB) to 2.5% of the total daily volume since BTC achieved its all-time high in October.
Altcoin Performance Split Between Haves and Have Nots
While prominent altcoins continue their battle to regain previous all-time highs, blockchain gaming and metaverse-related coins are experiencing significant upward momentum. Ethereum (ETH) has faced deflationary issues with its recent upgrades, with the community now shifting its focus to the Eth 2.0 merge as it inches closer to reality.
At the top of the list, we have Decentraland (MANA), a VR platform powered by the Ethereum chain, benefiting from increased adoption momentum and skyrocketing value. MANA has emerged as the top metaverse coin, racing to the No. 25 spot, with over $8 billion in capitalization. It recently reached its all-time high of $4.51 and is currently trading at $5.27.
Other metaverse coins like GALA and SAND (The Sandbox), too, have made notable gains as their mainstream adoption continues to explode. SAND has quickly moved to the No. 37 rank, amassing upwards of $6 billion in market capitalization. It is currently trading at $7.62, taking the month-to-date and year-to-date gains of SAND to over 260% and over 14,700%, respectively.
Another metaverse token, GALA, ranked No. 57, has increased its market cap to more than $3 billion. It is currently trading at $0.6818. Notably, GALA surged from $0.088 to $0.42 between Nov. 1 and Nov. 22, climbing by more than 30% month-to-date.
Other gaming projects like Dvision Network (DVI) and Ultra (UOS) have also witnessed more than 100% growth in value, potentially foreshadowing a strong week ahead for metaverse and blockchain gaming-related coins.
Crypto.com Gets Naming Rights to L.A. Arena
Prominent exchange Crypto.com’s native token, CRO, jumped as much as 73% in the last seven days. CRO reached its all-time high of $0.9132 on November 23, just as Crypto.com announced the successful $700 million deal to purchase naming rights to the Staples Center.
CRO has delivered significant gains this week, primarily due to the naming rights and its commercial featuring Matt Damon playing frequently, which has helped it connect with thousands of Americans unfamiliar with the crypto space.
Memecoins Lose Their Luster
Beloved memecoin Shiba Inu (SHIB), which shattered several records over a short period, has hit its own rough patch. SHIB is still facing extreme resistance at the $0.00004-mark, currently trending around $0.00004003.
The SHIB army received another jolt after the Shiba Inu development team issued a public notice on their Twitter (TWTR) handle about ongoing scams targeting investors interested in buying SHIB. Per the tweet, a group of impersonators is employing fake Shiba Telegram channels to scam investors by promising airdrops, rewards, and other similar giveaways.
Meanwhile, memecoin Floki Inu (FLOKI) is leaving no stones unturned to become the talk of the town. The Floki team has inked a sponsorship deal with Italian football club S.S.C. Napoli. According to the official statement, Napoli’s jerseys and the stadium’s LED signs will feature Floki’s Shiba Inu dog wearing a Viking helmet for the rest of the season.
The Floki Inu team has also partnered with other football clubs, including the Spanish La Liga’s Cádiz and Indian Super League’s Kerala Blasters, taking the same sports sponsorship route as FTX. The Floki team has highlighted their heightened focus on marketing, setting aside $1.5 million for advertising and branding campaigns. Still, despite the Floki Inu team’s efforts, FLOKI is struggling to regain its footing after touching all-time lows on November 18.
Disclosure: At the time of publication, Reuben Jackson did not have a position in any of the securities mentioned in this article.
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