This week in crypto saw mixed market momentum, with Ethereum leading gains, while Polkadot and BONK faced localized sell-offs. Broader market sentiment wavered between optimism and caution, driven by on-chain data, regulatory signals, and institutional activity.
Ethereum Maintains Bullish Momentum Despite Euphoria Warnings
Ethereum (ETH) gained over 50% in the past 30 days, briefly touching $3,750, supported by tight supply, rising institutional interest, and treasury accumulation from firms like SharpLink Gaming.
However, analysts flagged “extreme euphoria” in social media sentiment as a potential red flag for a short-term correction.
Still, low memecoin dominance and absence of broad speculative excess suggest that ETH’s rally may have more room to run.
Bitcoin Consolidates Near Highs as Dominance Declines
Bitcoin (BTC) hovered near the $123K mark, reaching an all-time high earlier in the week. While still strong, BTC’s market dominance declined, signaling a shift toward altcoin trading.
Social media dominance for BTC spiked, typically associated with local market tops, according to behavioral data models.
Traders are watching for a breakout above resistance or a potential cooldown.
Polkadot (DOT) Struggles to Break Resistance
Polkadot’s native token DOT dropped 2% over the week, fluctuating between $3.87 and $4.11. Despite institutional accumulation at support zones, bearish momentum persisted.
Key resistance remains at $4.11, while strong buyer interest continues near $3.87-$3.93.
A late-week V-shaped recovery provided some optimism but lacked volume confirmation.
BONK Falls 9% After Burn Hype and Exchange Transfers
BONK, the Solana-based memecoin, saw aggressive 15% volatility, rising on news of a 500B token burn, but later dropped 9% after a Galaxy Digital-linked wallet transferred $18.75M in BONK to exchanges.
Despite the pullback, support held around $0.00003185, and price stabilized above $0.00003400.
The clash between bullish supply reduction and bearish liquidity movement created uncertainty among traders.
Market Outlook: Altcoin Rotation and Liquidity Watch
As Bitcoin dominance weakens, traders are rotating into altcoins, with ETH, SOL, and meme tokens seeing increased volume. Analysts suggest monitoring on-chain wallet flows, institutional buying behavior, and social sentiment metrics for direction.
While volatility is high, support levels across top assets are holding, hinting at continued bullish bias—if external shocks are avoided.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.