2 key indicators showing the downward trend in the digital currency market continue

Data on futures markets and declining demand for Tetra show that the digital currency market may continue to decline and prices may continue to fall to lower levels.

According to the Kevin Telegraph, the market value index of the digital currency has fluctuated above the upward trend over the past three months. The $ 1.75 trillion level is the last support tested three days ago on April 27. The test of this support coincided with the fall of bitcoin to the level of $ 38,000 and the reduction of the price of Atrium to $ 2,800.

2 key indicators showing the downward trend in the digital currency market continue
Graph of the total market value of digital currencies; 2-day inspection.

The market value of digital currencies has decreased by 3.5% in the last 7 days, with the largest price reductions related to tokens Ripple (18.8%), Cardano (10.2%) and Polkadat (9.7%) ).

Studying the situation of other market coins gives analysts a more balanced perspective. Some tokens related to Chinese block games and protocols active in the field of metaware have increased by more than 25% during this period.

2 key indicators showing the downward trend in the digital currency market continue
Digital currencies that have had the best and worst performance in the last 7 days.

The price of Apecoin rose 44% in seven days on the eve of the start of sales of Otherside land. Metavars Adreside was made by Yuga Labs, Animoca Brands and the Bored Ape Yacht Club project development team, and investors in the NFT market have been waiting for it for a long time. Sales of the fields under this project are scheduled to begin at 5:30 a.m. tomorrow (Tehran time), May 4.

Along with AppQueen, the price of the STEPN token, which has caught the attention of many consumers with the idea of ​​”walking for money”, has risen 28 percent in the past week. The jump came after Kevin Bass, the largest digital currency exchange in the United States, announced plans to add the Token to its trading market.

The 15 percent jump in Nexo prices is largely due to the release of the token on the Bainance stock market and the plans of the Nexo team to build a credit card to use as collateral for daily payments instead of selling digital currency.

In contrast, Zilliqa adjusted part of its 380% jump at the end of March during these seven days. The jump came after the Zilika team announced on March 25th that it planned to launch a transformation project powered by Nvidia, one of the world’s largest hardware manufacturers.

The price of Axie Infinity game tokens has also reached its lowest level in the last 9 months, while the number of users and transactions related to this game has decreased by 15% in the last 30 days.

Premium Tetra shows a lack of demand among buyers

The OKX Exchange Tetra Premium Index measures the difference between the price of Tetra in Peer-to-Peer transactions in China at the current value of the US dollar (yuan).

Tetra’s excessive demand pushes the index above 100%. On the other hand, during a downtrend, Tetra’s demand decreases and the Tetra Premium Index is 4% or more than the 100% level (moving down).

2 key indicators showing the downward trend in the digital currency market continue
Premium Teter Index.

The Tetra Premium Index reached 102% on April 28, the highest level for 2022. This move was accompanied by a jump in bitcoin to over $ 40,000. The price of bitcoin fell below $ 40,000 later that day. The Tetra Premium Index has recently reached 100%, which can be considered a sign that the emotions of small retailers in the market have been neutralized.

Double feelings in futures markets

Perpetual futures contracts have a fixed fee, the amount of which is usually updated every 8 hours. The purpose of exchanges that receive this fee, known as the percentage of funding, is to prevent market imbalances.

A positive rate of return on capital means that traders in long positions use more leverage, and a negative position indicates that traders in short positions have such a position.

2 key indicators showing the downward trend in the digital currency market continue
7-day funding rate for constant futures on April 29 (May 9).

As you can see from the photo above, the weekly funding rate for Bitcoin and Atrium is slightly positive. In general, buyers use leverage a little more than sellers, and this is not something that forces market participants to leave their trading positions. For example, Luna’s weekly funding rate is positive at 0.15% (equivalent to 0.6% in 30 days), which certainly can’t worry futures traders.

The neutrality of the Tetra premium index and the funding rate show that the demand of small retailers to buy digital currencies is low. At the same time, the digital currency market is currently trying to maintain its total value of over $ 1.75 trillion.

The publication of 2 key indicators, which show the declining trend of the digital currency market, continued, appeared first for the digital currency.

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