The collective cryptocurrency market is at a critical hub. Since the big altcoins are stagnating in the charts, Bitcoin could also have reached a local peak for the time being. However, the overall market cap value was at an interesting stage.
As shown in the graph above, the total market cap of digital assets was just below its all-time high of $ 2.42 trillion. The range was tested in early September and it was now extremely close to the ATH range again.
From this it can be deduced that a boost above $ 2.42 trillion can trigger an upward move overall, as market capitalization could move towards $ 3 trillion. Consistent with that thought, those three assets were most likely higher at press time.
Bitcoin, Ethereum and XRP; manage above average?
Of the top 10 crypto assets, only Bitcoin, Ethereum and XRP were able to manage positions above their immediate moving averages on the daily timeframe. The analysis has been done using the 15, 50, 100 and 200 daily moving averages to assess the resistance or support patterns across short and long term price movements.
At the time of going to press, these three assets were mostly holding up in the MA, suggesting the likelihood of stronger rallies.
However, it is important to note that if the downward pressure continues to weigh on the markets, the trend may change over the next few days. For example, XRP was currently testing the 50 moving average as a support and failure to rebound may result in a position close below the current moving MA.
How does each asset relate to the other?
In the current market situation, it can be important to assess the volatility correlation. Right now, and throughout 2021, Bitcoin and Ethereum shared a strong volatility correlation. This has also been evident in past upward rallies, but it was more evident during the recovery.
In terms of XRP, at press time, Bitcoin shared a 68.7% correlation and ETH shared 71%. Therefore, the correlation index for these three assets remains on the higher side.
With Bitcoin slumps over $ 60,000 in the near future, Ethereum should be able to follow suit and break through $ 4000. For XRP, the price range is still placid as it failed to hit any strong highs during the rally from August to September.