The total crypto market capitalization currently stands at $1.64 trillion, down 0.78% over the last 24 hours at press time. This downtrend, while relatively small, has affected major cryptocurrencies like Bitcoin, Ethereum, Chainlink, XRP, and Cardano, which are down between 1-3% on the day.
These types of slow, gradual downtrends are actually the most boring ones in crypto. Even though it may seem counterintuitive, traders and bulls could become more excited by sharper sell-offs than by these sluggish declines. Steeper crashes show the market taking profits and would offer buying opportunities, while these dreary downward crawls suggest a lack of conviction in either direction.
Though dull, these periods signify the market catching its breath after previous rallies rather than wholesale panicking. Still, they try the patience of traders waiting for the next significant move.
Over the past week, the total crypto market cap has traded in a range between $1.55 trillion and $1.65 trillion, unable to break out in either direction. Looking at the daily Relative Strength Index (RSI), a momentum indicator, we can see why.
The RSI is currently sitting at 45, right in the middle of its range. Readings of 30 and below indicate oversold conditions signaling a market bottom, while readings of 70 and above indicate overbought conditions typical of market tops. A reading of 45 suggests indecision in the market, consistent with the narrow trading range.
Despite the slight declines, overall activity across major crypto platforms like Telegram, Twitter and CoinMarketCap seems muted this weekend. Traders appear to be taking a lazy weekend for now. Unless Bitcoin and major altcoins can post decisive moves up or down from current levels, expect more of the same directionless action in the days ahead.
However, with the market looking indecisive based on momentum indicators, a larger move could still be in the cards once traders return from the weekend.
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