Bitcoin (BTC) and Solana (SOL) have bounced back on Monday after the cryptocurrency market saw a general decline last week. The market’s prospects remain dependent on the potential influence of the recently discovered coronavirus variant dubbed Omicron and on the Federal Reserve’s monetary policies.
Meanwhile, newcomer HUH Token is preparing for its launch on December 6 with ambitions of becoming one of the top 20 cryptocurrencies over the next 12 months.
At the time of writing, the leading cryptocurrency by market capitalisation was trading near $57,300, up 7.3 per cent from a low of $53,359 late Sunday. During Asian market hours, prices reached a high of $58,270.
S&P 500 futures were up 0.9 per cent, tracking gains in the pan-European Euro Stoxx 50 index and other risk assets such as the Australian dollar and crude oil.
Buyers returned to the market early Monday, as South African media said that Omicron patients treated thus far have had “very mild symptoms.” Bitcoin and risk assets, in general, fell on Friday as news of a reportedly vaccine-resistant COVID-19 variant emerging in South Africa increased the prospect of more economically severe lockdowns. The World Health Organization (WHO) classified the Omicron variation as a “concerning variant.”
The market assumption is that central banks and governments would immediately intervene with further stimulus if asset values fell as a result of possible lockdowns in key economies.
The Federal Reserve recently announced the start of a phased withdrawal of its $120 billion per month asset purchase programme. According to Goldman Sachs, the central bank may accelerate its January taper.
Traders are likely to pay careful attention to Federal Reserve Chairman Jerome Powell’s appearance before the United States Senate on Wednesday.
Bitcoin’s broad upward trajectory may restart if Powell reassures investors that they would get unlimited assistance in the case of a severe epidemic. According to the WHO, the risk linked with Omicron is quite high, and the newly discovered variety is “extremely divergent” and expected to spread rapidly.
On the hourly chart, Bitcoin’s comeback has assumed the form of a bull flag. A breakout would likely accelerate the rebound, possibly resulting in a retest of the $60,000 level.
On Friday, the price of Solana (SOL) fell 16%. Investors, on the other hand, used the weekend to review the situation and jumped into SOL on Monday, as bulls drove the price over the monthly pivot at $185. Intraday, the upswing has resulted in a recapture of the 55-day Simple Moving Average (SMA) at $200, which is serving as a springboard towards fresh all-time highs at $268.
Solana’s price might maintain a 30% gain in a resurgent upswing. The Relative Strength Index (RSI) has recovered to pre-Friday levels, indicating solid and significant buy-side demand.
SOL price has recaptured the 55-day simple moving average at $200 and is utilising it as a launchpad for an attack on the $219.75 level. This historical pivot demonstrates exceptional evidence of both support and resistance throughout history, establishing it as a force to be reckoned with. Once bulls break above, anticipate a flood of buyers to hop on the ‘bandwagon’ as prices soar to new all-time highs, which currently appear inevitable around $267.52.
HUH Token (HUH)
Meanwhile, in new emerging cryptocurrency news, HUH Token is preparing for its launch on popular crypto exchanges PancakeSwap and Uniswap on December 6.
But people can already buy HUH Token during its presale, presenting the best time to get in.
Within the next several years, HUH Token hopes to be one of the top twenty cryptocurrencies in terms of market cap.
HUH Token is launching a referral programme where holders can refer friends and receive 10% of that person’s initial purchase. There is no restriction on the number of people you can refer. These rewards will be paid out in Binance Coin (BNB) or Ethereum (ETH), depending on which exchange the holder uses.
HUH Token is also rumoured to have top social media influencers signed on to promote it, in order to give it the same popularity boost meme coins like Shiba Inu and Floki Inu received.
But HUH Token wants to be more than just another meme coin, and its developers have dubbed it a “utimeme”, a mash-up between the word’s utility and meme.
To further enhance this sentiment, HUH Token has announced that it will be locking in $1 million worth of liquidity for two years from its launch, in an attempt to make it more sustainable and entice holders.