Key Points
- The crypto market is in a state of anticipation ahead of the U.S. election, with memecoins predicted to experience rapid price shifts.
- Bitcoin has seen a bullish trend, but trading volume has decreased, while Uniswap’s announcement of “Unichain” has caused concern over potential liquidity fragmentation.
The crypto market is currently in a state of anticipation, largely due to the upcoming U.S. election.
Analysts predict that regardless of the election outcome, volatility will be a significant factor in November.
Memecoins and Market Volatility
More than Bitcoin, memecoins are expected to witness rapid price shifts, as evidenced by the current market condition.
In 2024, memecoins such as dogwifhat (WIF), PEPE, and POPCAT have seen significant gains, with memes rallying more than 1,000% in Q1 2024, outperforming all other sectors of the crypto market.
This has led to investors’ increased interest in these joke-coins.
Bitcoin’s Performance and Expectations
Since August 2024, Bitcoin (BTC) has been on an upward trend, with higher highs and higher lows forming on its daily chart.
However, despite the bullish momentum, falling trading volume in October is a cause for concern.
At the time of analysis, BTC was trading at $68,671, approaching the supply zone at $72,000.
If BTC breaks above this area with strong volume, it could signal a bullish continuation.
On the downside, the demand zone near $57,500 provided good support, reflecting high interest from buyers.
The Simple Moving Average (SMA) indicated an upward trend, supporting the recent bullish momentum.
The Average True Range (ATR) hinted at a relatively moderate volatility.
Investors are heavily expecting BTC to cross the all-time-high mark post U.S. election.
Interestingly, the number of whales remained relatively high in October and the exchange inflow volume came down considerably.
This suggests that big-pocketed investors believe BTC is undervalued and is poised for a significant bullish breakout in the near-term.
Uniswap’s Announcements Cause Concern
Uniswap’s October announcement of “Unichain,” its upcoming Layer-2 superchain, and its planned migration to this new network, sparked considerable worry within the market and community.
The central concern was the potential fragmentation of liquidity across multiple chains.
Many feared that this move would divert trading activity away from Ethereum (ETH) and other networks and potentially harm the overall ecosystem.
In the wake of this development, many investors rushed to buy UNI tokens.
Consequently, the new address metric saw a sharp spike only to fall back later.
