Crypto Market Review, October 25

This week in the cryptocurrency market started with strong price performance on most digital assets, but the scene we see now is far from what we can call a recovery. Most assets returned to the red zone, and cryptocurrencies that remained on the brink of a breakout are now reversing down.

Memetokens in tough place

Both Shiba Inu and Dogecoin are not performing well or at least neutral in the downtrend we have seen in recent months. The main reason is the lack of supply for extremely risky assets such as the Shiba Inu.

As the demand for risk remains at an extremely low level, traders and investors tend to opt for more stable options, usually outside the cryptocurrency market altogether. Those who left their money in digital form are moving it away from exchanges, or “tethering out” until the situation on the market changes in a positive way.

In addition to the problem of risk demand, Shiba Inu is in a tough position in terms of fundamental value, as it still has almost no use cases, and the metaverse developed in the background does not seem to attract enough institutional funds.

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As for Dogecoin, Vitalik Buterin’s attempt to make smart contracts possible on the network seems to be in the embryonic stage and has not found the necessary developer support. However, the successful implementation of the technology on Dogecoin will make it more valuable in itself.

Altcoins return to the beginning

Despite the rally we saw last week, the majority of digital assets, including XRP and Monero, are going through a tough phase right now. XRP’s successful rise after Ripple’s success in court ended with the cryptocurrency falling back to the point where the whole rally started.

The lack of market support is the main reason behind the reversal. According to the data on the chain, the majority of the buying support was provided by retail investors, which means that the volume delivered was not nearly enough to sustain the same growth rate for more than a few weeks.

As for Monero, the privacy coin is still moving in a local downtrend, which may end up as a descending flag pattern emerging after a rapid price increase. The pattern acts as a short-term cooldown to accumulate assets and usually initiates the continuation of a rally.

At press time, XMR is moving in the green zone with a mild price increase of 0.9% in the last 24 hours. Unfortunately, XRP is not showing the same tendency and has lost more than 1% of its value since yesterday, actively testing the 50-day moving average support.