- Critical indicators highlight developing momentum in the crypto market.
- The market cap fair value logarithmic trendline is bullish.
- ADI divergence suggests a crypto market rally is in the early stages.
Into The Cryptoverse CEO, Benjamin Cowen has shared some crucial indicators highlighting the developing bullish momentum in the cryptocurrency market. In an initial post on X, the renowned cryptocurrency analyst shared the total crypto market cap fair value logarithmic regression trendline. The shared graphic highlighted a summary of the crypto market’s state, leaving a potential signal of what may happen soon.
Cowen’s post showed that despite the recent surge in the crypto market, it could still fulfill a significant upside momentum. The graphic image shows that the total crypto market cap has pulled away from the lower part of the curve and is attempting to break above the mid-line.
Read also: Crypto Market Cap: Bullish Prediction Sees $12 Trillion by 2026
Historical trend patterns show that breaking above the mid-line coincided with the past crypto market bull runs. Hence, a significant crypto market rally may be close.
Advance Decline Index (ADI) Supports Bullish Outlook
In the meantime, Cowen’s second post on X supports the crypto market cap fair logarithmic regression trendline despite facing the opposite direction for a long period. The analyst posted the Advance Decline Index (ADI), merging it with the total crypto market cap chart to reveal the divergence between the pair.
For context, a divergence between the ADI and the market trend often signals a reversal. This has been the case since 2022, as shown in Cowen’s post. However, the Daily ADI has started reversing and is now moving in the same direction as the total crypto market cap.
Combining both these indicators suggest a bull run may begin soon. However, crypto traders should also consider macroeconomic factors and sociopolitical developments. These factors help signal the actual crypto market state and could influence the next phase of the bull cycle.
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