The crypto market is showing first signs of recovery after weeks of pressure, attracting the interest of analysts. Attention is focused on technical analysis and potential trends.
Technical Analysis and Its Significance
Analyst Axel Adler Jr. highlighted a key technical development that could signal the end of the downward momentum that’s been weighing on prices since late July. The 120-day simple moving average (SMA-120) has finally pivoted upward after an extended decline, reaching the 'zero axis', a level often seen as a dividing line between bearish and bullish territory.
Potential Market Implications
This shift is notable because a similar move occurred last week but failed to gain traction. This time, however, the chart looks much healthier, hinting at stronger underlying support from buyers. If the indicator can hold above the zero axis for the next couple of days, it would serve as technical confirmation of a trend reversal.
Factors Influencing Trader Sentiment
Such confirmation could help restore confidence among traders who have been cautious after weeks of price weakness. Historically, similar SMA-120 breakouts have marked the start of multi-week rallies, though Adler cautions that no single signal guarantees sustained gains. Improving sentiment could also be supported by macroeconomic factors, including the possibility of more favorable monetary policy shifts.
Signs of recovery are accumulating in the crypto market, but it is important to consider that final trends will depend on various factors. Traders are now focused on holding the SMA-120 above key levels.
