The cryptocurrency market has continued its moderate rally since the weekend, with bitcoin’s price surpassing $17,000 for the second consecutive day. Popular altcoins such as Ethereum (ETH), Cardano (ADA) and Solana (SOL) are leading recent gains despite the negative market sentiment that has persisted since the implosion of FTX and Alameda.
According to the latest crypto price oracle, Solana (SOL) and Cardano (ADA) are up around 43% and 25% respectively over the past few days. With Ethereum (ETH) and BNB up about 9% and 12% respectively over the past seven days, market strategists believe traders will be caught in FOMO in the coming weeks.
As such, analysts say cryptocurrency prices may rise before forming imminent highs. Moreover, the impact of FTX and Alameda is not over yet, with top companies such as Gemini and Digital Currency Group severely affected, the latter on the brink of bankruptcy.
A closer look at the crypto market outlook
In particular, cryptocurrency insights firm Santiment has warned that the recent altcoin rally may not be sustainable as traders try to embrace FOMO. A short-term crypto rally is quickly followed by a bear market as traders scramble for profits, according to a research firm.
Nonetheless, Santiment noted that the altcoin’s rise is largely dependent on Bitcoin’s next move following its recent $17,000 breakout.
“I haven’t had many opportunities to point that out over the past year, but when you see altcoins being mentioned when prices are going up, it’s usually the crowd that altcoins are going up. , meaning they are trying to incorporate FOMO in. The results usually form the top…at least until the crowd starts to doubt that altcoins may rise again.
The cryptocurrency market has regained over $88 billion in the past few days after the FTX capitulation. According to market data provided by Coingecko, the market capitalization of cryptocurrencies is around $887 billion.
The biggest gainer in the crypto ecosystem is the Solana network, with most projects, including BONK, seeing Serum (SRM) gain more than 50% over the last 7 days.
Notably, the Solana ecosystem currently has a market capitalization of $11.2 billion, up about 10.1% in the last 24 hours.
The other top performer in the crypto sector over the past few days is the sports industry, with Chiliz (CHZ) and Flow (FLOW) up around 20% and 18% respectively over the past seven days.