The cryptocurrency market experienced increased volatility this week. Foreign media reported that Bitcoin briefly rose above $80,000, initially boosted by progress on the US Clarity Act, but subsequently retreated due to rising US Treasury yields, increased inflation concerns, and a decline in risk appetite, resulting in most cryptocurrencies closing lower.
This week's top performing tokens
KITE topped the list with a 21% weekly gain, continuing its strong performance from the previous week. The article suggests that KITE is approaching the $0.25 resistance level, with short-term buying continuing to support the pullback, maintaining a relatively strong trend.
Humanity (H) rose 14% this week, ranking second. The token has now risen for six consecutive weeks and has regained the $0.25 mark. The article states that H has recently been consolidating in the $0.20 to $0.25 range, and if the bullish trend continues, the market will continue to focus on the possibility of it pushing towards $0.30.
Injective (INJ) rose 13.25%, ranking third. The article noted that INJ also recorded its sixth consecutive week of gains, returning above $5. However, prices have come under pressure and fallen in the past two days, indicating that selling pressure remains. Whether it can stabilize above $5 is a key point to watch.
Smaller-cap tokens are more volatile.
Besides the aforementioned cryptocurrencies, smaller-cap tokens saw more concentrated price increases. Gitlawb (GITLAWB) rose 316% in a single week, Playnance (GCOIN) rose 260.6%, and Xphere (XP) rose 225%, exhibiting significantly higher volatility than mainstream assets.
TON, ICP, and PENGU have all fallen significantly.
Toncoin (TON) fell 22% this week, leading the decline. The article argues that after a surge of 83% the previous week, this week's move for TON appears to be a correction following a rapid rise. The current market focus is on the $1.50 to $2.00 range; if this area fails to provide effective support, the sustainability of the previous upward trend will be tested.
Internet Computer (ICP) fell 21%, ranking second. The article states that ICP entered a selling phase after rising 44% the previous week, showing weaker performance than TON. If selling pressure continues, the price may fall further below $2.50, although initial signs of consolidation have appeared around $2.60.
Pudgy Penguins (PENGU) fell 20.3%, ranking third. The article points out that PENGU had previously risen for six consecutive weeks, and this week's decline shows signs of a temporary cooling. However, its failure to stabilize its price near $0.01 and $0.008 indicates insufficient buying support below, suggesting a continued risk of further decline in the short term.
Macroeconomic factors suppress the market
The article argues that macroeconomic factors remained the dominant theme in the market this week. While Bitcoin briefly stabilized above $80,000, rising yields and increased risk aversion led to a return of funds to defensive positions, preventing most tokens from sustaining their gains.
Looking at the weekly performance, a few tokens were able to buck the trend and strengthen, but the overall market remained weak, with a clear divergence between gains and losses, especially small-cap tokens whose volatility was much higher than that of mainstream tokens.
