Going into Monday evening (16th of April) we have seen the mid-April market surge tail off, with huge gains taken over the weekend slowed back down, pushing the markets into a (mostly) market-wide descent.
Let’s take a look at where we stand right now.
*data from coinmarketcap.com
This is what we saw at the time of writing on Monday afternoon. The top 10 currencies based on market capitalisation, on what is looking like a reversal from the surge that took place at the end of last week, carrying on but slowing down through the weekend.
We started off the day with some smaller drops, but the market did seem to be heading in a healthy direction, that cannot be said for the current economy.
Cardano is still making progress however, this is expected to be as a result of their new Huobi listing but overall, Cardano looked promising the past few days anyway, with a further promise of more progress over the next few days.
Bitcoin has sunk below the $8,000 mark, but still rides well above the $7,000 target that it was failing to reach last week. EOS and NEO taking the brunt of the decline thus far, yet this is to be expected since they seemed to hit decent gains last week, just before the market surge took over, suggesting that EOS and NEO are setting the trend a little bit. Perhaps, once these two have settled down and corrected themselves, they will begin to rack up value once more and contribute to a second bull run?
If we remember, during the surge last week, many experts had predicted that this indicated the start of a new upwards progression which we would see over the coming weeks. In those predictions, this correction period was accounted for, meaning that at the moment, people really aren’t worried about the decline we are currently seeing, it should, in theory, remain short lived.
As Investopedia states:
“Corrections are generally temporary price declines interrupting an uptrend in the market or an asset. A correction has a shorter duration than a bear market or a recession, but it can be a precursor to either. A correction is very different from a crash since it measures the percentage decline from the most recent high. A crash is generally considered to be a 10% or more decline, irrespective of the most recent high.”
There are some big events coming up this week, the US Tax Day deadline (tomorrow) which no doubt has a profound impact on what we are seeing now, plus, smaller, more localised announcements from Verge and Ripple expected over the coming days that are sure to at least impact the value of those currencies respectively.
Let’s see how things go on over the next few days. If this indeed is just a correction period, we will see things start to level out nicely quite soon, if this is something more hostile, then we will know soon enough.
Ripple, Verge and Cardano may have the backing to climb out of this one ahead of the others but we can never really tell. Making accurate predictions in a market as volatile as this one is quite the task indeed.