Bitcoin Rally Stalls as XRP and Zcash Lead Gains; Arca Says Rally Not a Dead Cat Bounce
According to analysts from Arca, the recent recovery in cryptocurrency prices is not a fleeting moment, as key market indicators show signs of a rebound. Bitcoin was trading at approximately $111,000 after a weekend surge during US trading hours on Monday, while Ethereum fell back below the $4,000 mark.
XRP and Chainlink led the gains among large-cap assets, with Zcash jumping by 17% as privacy tokens demonstrated relative strength. The analysts from Arca noted that the recent recovery signals a structural reassessment rather than a collapse, as macroeconomic risks gradually ease.
Get $500 free Bitcoin mining for a free testing phase:
- Real daily rewards
- 1 full month of testing
- No strings attached
If you choose to buy after testing, you can keep your mining rewards and receive up to 20% bonus on top.
"We have seen this play out too many times to be pessimistic due to a structural breakdown," wrote Arca. "The recovery we are witnessing is not just a flash in the pan."
In the CoinDesk 20 Index, XRP was priced at $2.5005 and Chainlink at $18.77, while Zcash, which is not included in the index, was noted at $240.21. Most stock-related digital assets also saw gains, benefiting from the relief rally in cryptocurrencies over the weekend. Bitcoin miners Riot Platforms and MARA Holdings surged by nearly 10% and 6%, respectively, while Galaxy Digital rose by 5%.
Despite the weekend's easing of concerns, the Crypto Fear & Greed Index remains deep in the "fear" territory, with some analysts expecting the end of the bull market and a stronger correction. However, Arca's analysts contradicted the notion that the recent cryptocurrency upswing is short-lived, emphasizing that the strong sell-off earlier this month was part of a broader realignment.
They pointed to several signs of structural recovery, including a weekly increase of about 15% in trading volumes on exchanges, a resurgence in open interest for decentralized perpetuals, and a return of liquidity. Additionally, they noted a decrease in macroeconomic pressure, with stress in the regional US banking sector appearing to have subsided.
In summary, the cryptocurrency market is showing signs of recovery, with key assets like Bitcoin and Zcash leading the way. Analysts from Arca believe that the current market dynamics indicate a structural shift rather than a temporary bounce.
Sources:
