Toward the end of February, the crypto fear and greed index fell to a reading of 10, a level last seen during the 2022 bear market. This reading represents a period of extreme fear during which several prices crashed to low points they have resisted hitting in months.
But today, the same index jumped to 31, indicating that the market’s sentiment has eased from extreme fear. Amid this shift in sentiment, CCN reveals how the performance of some altcoins impacted the change.
These altcoins form part of the top crypto gainers out of the top 100 this week. However, it remains uncertain if the prices of these altcoins will continue to soar to further ease the panic in the market.
Historically, extreme market fear has sparked notable rebounds. This week, the top three gainers are among the top 30 crypto coins, suggesting a similar turnaround may be underway.
This analysis reveals why the prices of these altcoins soared and what could be next for them.
Cardano (ADA)
Cardano (ADA) is the top altcoin gainer this week. ADA’s price has increased by 45% in the last seven days.
This rally happened mainly because Donald Trump announced that ADA would be part of the U.S. crypto reserves. Hours after the disclosure, Cardano’s price surged past $1 for the first time since Jan. 18.
In the last 24 hours, Cardano’s price fell after Trump issued an executive order for the Bitcoin strategic reserves. Meanwhile, similar proposals related to altcoins are still awaiting approval.
From a technical perspective, ADA might replicate its performance on Monday. One reason for this is the Moving Average Convergence Divergence (MACD), which is still positive despite ADA’s decline to $0.89.
The positive MACD reading indicates bullish momentum. Thus, if Cardano’s price is sustained, it might refrain from dropping below the $0.82 support. Instead, the cryptocurrency’s value could rise beyond the $1 mark again.
On the contrary, ADA might experience another correction to $0.70 if the 0.82 support fails to hold, thereby invalidating the bearish bias.
Bitcoin Cash (BCH)
Bitcoin Cash is another cryptocurrency that has contributed to the ease of the extreme fear in the market. BCH’s price has increased by nearly 40% within the past seven days.
One reason for this double-digit hike is the coin’s transaction rate increase, which also led to a new high. In the process, Bitcoin Cash’s price retested $400.
While BCH has slightly retraced from that height, the daily chart shows that the pullback might not last long. Based on the image below, the Chaikin Money Flow (CMF) has maintained its position above the zero signal line, indicating rising buying pressure.
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Should this remain the same, Bitcoin Cash’s price could climb as high as $498.85 in the short term.
However, the trend might change if the cryptocurrency drops below the $394.25 support line positioned at the 0.786 Fib level. In that scenario, BCH could decline below the $300 mark.
Hedera (HBAR)
HBAR is another crypto that has helped ease pressure on the crypto fear and greed index this week. Over the last seven days, HBAR’s price has increased by 30% due to speculation that the token could soon receive exchange-traded fund (ETF) approval.
Apart from that, speculation has continued to spread that HBAR might be part of the U.S. crypto reserves because the project was founded in the country.
At press time, HBAR’s price trades at $0.26. On the daily chart, the Bull Bear Power (BBP) shows that bulls are dominant.
Hence, HBAR’s price will likely increase if bears are on the back foot. In this case, the cryptocurrency’s value could rise to $0.40.
However, if sentiment around the token becomes bearish, this might not happen, and the price might drop to $0.18.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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