Cryptocurrency prices are steadily retracing after a prolonged period of a devastating bearish cycle. Despite the steady retraction, daily volumes have spiked to a level last recorded in April 2018. This is an indicator that more investors are participating in the Digital Token market and a widespread market rally is about to break out.
Crypto Trading Volume Breaks A Yearly Record
On February 19th, 2018 at 15:42 UTC, the overall daily Crypto trading volume hit a high of $36 billion. Data shows that on that day, the average daily volume was at an impressive $33 billion. Since the figure has retracted to $28 billion as at February 21st, 2019 at 16:42 UTC, the volume has formed a peak that was last recorded on April 25th, 2018 at 16:42 UTC when the volume hit $39.7 billion before falling along with the bearish prices.
The Weekly Peak Crypto Trading Volume Is Very Significant
It is important to note that the current volume is nowhere near the record highs of early 2018 when the daily volume used to total $68 billion which is more than twice the current figures. However, the continuous rise of the volume and the peaking of the price in the middle of this week is a significant indicator of a Crypto market that is active and on an upward spiral.
Another significance of the surge in the daily volumes is that when the last high volume was recorded in Q1 2018, Cryptocurrency prices were at an all-time high and the market sentiments were positive of a sustainable rally.
However, at this point, the market is yet to recover from the bearish cycle that started in November 24th that has led prices to fall below the support levels that no one expected. For instance, BTC is trading below $4,000 and Ethereum is under $150; a picture that is common across the over 2000 listed Digital Tokens.
5 Tokens Are Leading The Pack
Bitcoin at a daily volume of $8.4 billion, Tether at $7.4, Ethereum at $4.3, EOS at $1.5, and Litecoin at $1.4 are the leading Cryptos with the highest daily trade volumes. With the exception of USDT which is a stablecoin, the other 4 Cryptos on the list have a weekly gain of 9% for BTC, $19% for ETH, 36% for EOS, and 18% for LTC. This is because of the large volume of trading that is easing selloff pressures and leading to price surges in the absence of external shocks that impact the market.
Other Cryptos are also showing a weekly green except for a few Tokens whose communities are grappling with technical challenges triggering massive selloffs in the otherwise recovering market. The aggregate market cap is now at $133 and Bitcoin whose market dominance is 52% is almost breaking the $70 billion cap.
Are We Ahead Of A Rally?
Historical data and evidence show that it is almost impossible to predict future cycles. However, there are certain indicators that show the intensity of the market such as the RSI. Additionally, the high market volume indicates that a market reversal is about to gather steam.