OKB, Morpho and Arbitrum led the cryptocurrency market last week with outstanding increases, while Pump, SKY, and SPX6900 plummeted sharply.
This week's volatility reflects a clear capital rotation, with Bitcoin slightly down, Ethereum sharply up, and mid-cap coins beginning to attract new capital.
MAIN CONTENT
OKB, Morpho and Arbitrum recorded impressive growth, leading major cryptocurrencies this week.
The coins Pump, SKY, and SPX6900 are under strong selling pressure, falling into the deepest bearish group in the market.
The market trend has shifted to optimism, with capital flows moving from Bitcoin to mid-cap projects.
How did the cryptocurrency market perform last week?
Last week had a tone of high volatility and optimism, with a clear distinction between the leading group and the sharply declining coins. Bitcoin dropped nearly 3% from its peak, while Ethereum surged strongly, creating a new highlight in the market.
The adjustment of Bitcoin occurs when Fed Chairman – Jerome Powell – signals a dovish stance, causing investor sentiment to shift from caution to optimism, pushing capital flows into mid-cap coins. As a result, Ethereum became the center of attention while Bitcoin temporarily paused.
‘Signals from Fed leaders this week have reversed market sentiment, causing capital to flow strongly into mid-cap coins instead of just concentrating on leading coins like Bitcoin.’
– Cryptocurrency market report last week, AMBCrypto, August 2024
This scenario helps ‘blue-chip’ coins like OKB and Arbitrum record growth, while small-cap groups like Pump and SKY are under strong selling pressure. This differentiation is evidence of high volatility, a characteristic inherent in the cryptocurrency market.
What is OKB and how did its price perform last week?
OKB is the token of the OKX exchange, which led the cryptocurrency market this week with a 66% increase compared to the opening price of 117 USD, before facing an important resistance area.
The developments show strong buying power, with many investors continuing to participate even as the RSI indicator has become 'hot'. Notably, two consecutive days on August 20 and 21 saw two green candles above 40%, pushing the price of OKB to a peak of 258 USD, demonstrating strong confidence from buyers.
Currently, OKB has adjusted down 24% from its peak, with short-term profit-taking occurring. However, the MACD indicator still gives a bullish signal, and if the support range of 190-200 USD is maintained, OKB has the potential to continue forming a new upward wave towards the 300 USD mark.
Why is Morpho outstanding and what is the outlook for the near future?
Morpho (MORPHO) is a yield-focused platform, emerging in the strong growth group with a 26% increase from a price level of 2 USD. At the beginning of the week, MORPHO dropped 3.9%; however, four consecutive days of strong capital inflow led to the sellers being 'stuck'.
Although two profit-taking sessions brought the price back to the 2.60 USD range, MORPHO remains above the Q1 resistance peak. To maintain the upward momentum, confirmation of new capital flows is needed as trading volume has decreased by 66% – a sign of a short-term pause; without new buying power, the price could correct back to around 2.30 USD.
‘Morpho has surpassed the key Q1 resistance; however, the upward momentum needs additional liquidity support to avoid a deep correction in the short term.’
– AMBCrypto technical report, August 2024
With the current price structure, MORPHO remains a bright spot for medium-risk investors, but sharp monitoring of capital flows into this group is needed.
What trend has Arbitrum shown over the past week?
Arbitrum (ARB) is a Layer-2 scaling solution, recording a modest increase of 6% but attracting attention due to its sustainable bullish structure. ARB has closed three consecutive weeks in the green without entering a state of technical overbought.
The price of ARB started the week at the resistance level of 0.50 USD, then dropped nearly 11% in the first two days due to profit-taking pressure. However, midweek saw a strong reversal to the peak of 0.60 USD, indicating that buying power still prevails.
The 7% drop on the day to 0.56 USD has not changed the bullish structure. If this level is maintained, ARB could very well turn back to the Q1 resistance level, solidifying its medium to long-term position.
Which other notable altcoins recorded impressive gains?
In addition to the three 'stars' mentioned above, the market also witnessed the breakout of smaller altcoins, most notably Alturu (ALU) which surged by 222%, Huobi (HT) increased by 141%, and Wayfinder (PROMPT) rose by 137% this week.
Strong volatility in these groups is a sign of speculative capital flows, often accompanied by higher risks but also opening up significant opportunities for investors to closely monitor market fluctuations.
What is Pump.fun and why is it among the top decliners?
Pump.fun (PUMP) is a token that centers on community factors, which dropped nearly 20% last week from an opening price of 0.036 USD – marking the first week of decline in a month.
The price movements clearly lean towards a downtrend, as the level of 0.04 USD failed to become support. Right at the beginning of the week, PUMP dropped 14% to 0.035 USD, followed by a 7% loss on the day falling below 0.03 USD, indicating weak buying power. If this level is not sustained, a deep correction to around 0.024 USD could very well occur.
The current tug-of-war state indicates high risk for short-term traders, requiring caution against the potential for unusual volatility due to easily influenced community sentiment.
What challenges did SKY face in the past week?
SKY (SKY) is a utility token, down 14% from the level of 0.07 USD, confirmed by the MACD still maintaining a bearish signal with no signs of trend reversal.
Early week recovery efforts with a slight increase of 2.57% did not attract new capital, and SKY quickly dropped another 6.58%, breaking through the support level of 0.07 USD and then falling to 0.06 USD.
Although technical rebounds to the 0.07 USD level may still occur, the overall downtrend structure indicates a high risk of a deeper decline in the coming week.
What notable period did SPX6900 go through?
SPX6900 (SPX) is a token belonging to the index group, this week dropping 13% from the opening price of 1.52 USD, as buying power was insufficient to turn resistance into sustainable support.
Since the peak above 2.30 USD at the end of July, SPX has remained above 1.50 USD until breaking through the 1.30 USD level – a sign confirming the downtrend. This also indicates that buyers can no longer maintain key support levels, highlighting the bearish tendency of the technical indicator.
If it continues to lose the 1.30 USD level, the main trend may see SPX drop further to 1 USD, especially if capital flow indicators continue to weaken.
Which coins recorded deep declines besides the main group?
A broader analysis of the market shows that strong volatility also impacts smaller altcoins. Codatta (XNY) had the biggest drop at 71%, Ket (KET) fell by 54%, and MYX Finance (MYX) decreased by 44% this week as buying power nearly vanished.
This trend demonstrates the erratic capital flows in an environment dominated by speculative sentiment.
What is the overall message that investors should pay attention to?
This week's developments are typical of the cryptocurrency market: explosive, deep corrections, and no room for complacency. Investors need to be alert, update information, and conduct thorough self-research before deciding to trade any coin.
Frequently asked questions
Which cryptocurrency increased the most last week?
Alturu (ALU) leads with a 222% increase, followed by Huobi (HT) and Wayfinder (PROMPT) with increases of 141% and 137% respectively, according to aggregated data from CoinGecko.
Why did the price of OKB increase sharply last week?
OKB recorded a 66% increase due to strong buying power when breaking resistance, showing positive technical signals and a shift in investor sentiment from Bitcoin to mid-cap projects.
What caused Pump.fun to decline sharply?
Pump.fun dropped sharply due to increased selling pressure, failing to hold key support levels, coupled with weak buying power and short-term profit-taking sentiment rising within the community.
Which indicators confirmed the downtrend in SKY this week?
The MACD indicator gives negative signals, with prices continuously breaking key support levels, especially after a series of strong declines in the week.
What should investors do when the market is highly volatile?
Always conduct your own research, update information from reputable sources, and manage risks tightly are key factors when trading in a high volatility period.
Source: https://tintucbitcoin.com/okb-arb-tang-pump-spx-giam/
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