After several weeks of turbulence and dramatic price swings, we are seeing a very serene picture as the market continues to search for the point of equilibrium. Since the year is already ending, we should not expect any major changes.
Every single day of trading in the Green is a good sign.
December 9 brought relief to many retail traders holding long positions on various tokens. The whole market is trading in the green with the overall market cap growing by 2.4% reaching over $860 billion.
Trading volumes are also up and many tokens are looking good with signs of a soon-to-start rally.
DeFi volumes are growing too
The last three weeks were cruel to decentralized finance and many companies immediately reacted by either canceling some of their plans or reducing the sizes of their teams.
KuCoin, Koinly, Binance, and many other companies either announced stopping new hiring or cutting up to 30% of staff to brace through the long-lasting crypto winter.
Even a small bump in the price chart brings confidence back and allows companies to take a short break. Today, DeFi tokens were traded actively with the share of trading volume being close to 6% of the total market trading volume.
All major coins like Tether, Bitcoin, Ethereum, Cardano, Polkadot, and XRP were doing well and managed to grow by a single-digit percentage.
Such small changes in price would not cause any commotion in the crypto community usually, but the way the whole market is recovering is taken as a sign of the industry’s health and resilience in trying times.
The recovery may be short-lived
One of the biggest concerns that experts have is that the current situation in the crypto market is a temporary improvement of long positions before an even more dramatic bear market that could decimate some retail traders holding on to their coins. It is the worst possible outcome.
A more likely scenario is that the market will find a new equilibrium point and hold to new support levels through the first quarter of 2023.
Making rash decisions now is not the best course of action.