Cryptocurrency Market Recovery: Key Insights on Trends and Investments

The cryptocurrency market has grown by 8% in the last week, with Bitcoin and Solana showing signs of recovery. Bitcoin is attempting to reverse its downtrend, while Solana aims to maintain momentum towards higher price levels. However, investments have faced significant outflows recently, and Project Mantra’s token has notably collapsed, raising accusations of fraud.

The cryptocurrency market has experienced an 8% growth over the past week, stabilising at approximately $2.7 trillion. This level previously served as a support point in late March, prior to a downturn in early April. Continued upward movement may rely on solid consolidation above the 200-day moving average, currently around $2.97 trillion, to validate these gains.

Bitcoin is currently exhibiting a cautious ascent, trading above its 50-day moving average at $85.7K, marking a significant attempt to reverse its downtrend. As the 200-day average approaches, a confirmation of this trend shift may soon follow. Conversely, there is concern that Bitcoin has entered a resistance zone that could dampen the strength of its rebound.

Solana has seen a notable increase of 20% over the last week, suggesting a technical bid to re-enter a bullish market trend. It is currently positioned above its 50-day moving average near $130. Achieving consolidation above this level may open pathways to $145, a significant resistance threshold. Breaking beyond this could indicate the reversal of the downtrend, possibly paving the way toward $180.

In terms of investment flows, CoinShares has reported a $795 million decline in global crypto fund investments last week, following a $240 million outflow the previous week. Most notably, Bitcoin suffered a decrease of $751 million, while Ethereum and Solana saw reductions of $38 million and $5 million, respectively. In contrast, XRP witnessed an influx of $3.4 million, with Algorand and Avalanche gaining $250,000 each.

Recent tariff modifications have resulted in unprecedented outflows of $7.2 billion, essentially nullifying net inflows since the start of the year. Notably, call options for Bitcoin targeting $100K are leading on the Deribit platform, featuring an open interest of approximately $1.2 billion.

Additionally, Project Mantra’s MANTRA token (OM) experienced a staggering collapse of 90%, with its market capitalisation falling from $5.5 billion to $765 million. This event has raised concerns within the crypto community, igniting suspicions of fraudulent activity, categorising it as the most significant rug pull since the LUNA and FTX incidents.