The crypto market led by Bitcoin opened the third week of May with a mild rebound from last week’s bearish sentiments. Bitcoin and Ethereum prices were up approximately 2.2 and 1.4 percent respectively in the past 24 hours to trade around $27.44k and $1,831 during the early London market. The meme coin industry had significantly cooled down following the capitulation of Pepe (PEPE), and WOJAK, among others in the past few days.
Most crypto traders are closely monitoring Dogecoin which has recorded a sharp uptick in daily transactions due to the rise of DRC20 standards.
Stablecoins Rise
According to market data provided by the intelligence platform Santiment, there has been a significant increase in Stablecoin’s social dominance in the recent past. Notably, Santiment has associated the rise of Stablecoins with the capitulation of most assets including HEX and Pepe. Moreover, Santiment noted that traders have begun to take refuge in Stablecoins as the market stagnates.
Typically, the rise of Stablecoin’s social dominance and daily traded volume in a bearish market is a key indicator of more sell pressure amid increased crypto market volatility.
Bitcoin Price Analysis
With the stablecoin’s social dominance and volume on the rise, the Bitcoin market is likely to dip further in the coming days. According to a popular crypto analyst on Twitter, Rekt Capital, last week’s Bitcoin close should be a wake-up call for long traders that more downside is likely ahead. As a result, the analyst noted that Bitcoin traders should monitor if the bulls will get rejected at $27.57k.
In this regard, a rebound toward $31k could be delayed for months if not weeks.
Source: https://coinpedia.org/altcoin/stablecoins-social-volumes-rises-as-bitcoin-teases-25-7k-here-is-what-to-expect-next/