Altcoins like Stacks, Floki, Bonk, and Solana continued their recent rebound as traders bought the dip and as the crypto fear and greed index moved to the neutral point.
Floki, Stacks, Bonk, and other tokens are rising
Floki (FLOKI) token rose to $0.0001370 on Wednesday, Aug. 7, 42% above its lowest point this week. Similarly, Solana (SOL) jumped to $154, 41% higher than its weekly low of $110 while Stacks rose to $1.4420. Other top gainers were altcoins like Popcat (POPCAT), Dogwifhat (WIF), and Bonk (BONK), which was up by 7%
These tokens rose as the recent fear among stock and crypto investors eased. The crypto fear and greed index rose to the neutral point of 43 from this week’s low of 38, while the VIX index, known as the fear gauge on Wall Street, retreated.
As a result, American, European, and Asian stocks have all bounced back in the past two days. The Dow Jones rose by 294 points on Tuesday and was up by 300 points in the futures market. Similarly, the S&P 500 and Nasdaq 100 futures jumped by 51 and 217 points, respectively.
Bitcoin price death cross is a big risk
Floki, Stacks, and Bonk prices also rose because of Bitcoin’s resilience as it jumped to over $57,000. It also formed a hammer candlestick pattern and a falling broadening wedge, pointing to more gains ahead.
However, the biggest technical risk for Bitcoin (BTC) is that it is about to form a death cross, where the 200-day and 50-day simple moving averages cross each other. A death cross leads to more downwards movement since it signals that bears have prevailed.
The last time Bitcoin did a golden cross – its opposite – was in October last year, the coin rose by over 110% afterward. Bitcoin (BTC) also formed a death cross in January 2022, which was followed by a drop from $48,000 to $15,700 in 2022.
Other altcoins are also about to form a death cross if the current recovery doesn’t hold steady. Solana was trading at the 50-day and 200-day moving averages, while Floki will do the same, as shown below.
If these coins retreat, it will mean that the ongoing rebound is a brief dead cat bounce, which is a common occurrence when cryptocurrencies are falling.
Still, there are some potential catalysts for Bonk, Floki, and Stacks. Broadly, these tokens will benefit from the potential monetary policy easing, which the market has priced in. Citi, JPMorgan, and Wells Fargo analysts expect the Fed to cut by 0.50% in September, while Jefferies sees it holding an emergency meeting and slashing rates this month.
The other likely catalyst is signs that more companies will apply for a spot Solana ETF. VanEck has already applied, and Franklin Templeton has hinted that it will apply. A Solana ETF would likely lead to more upside for some Solana tokens like Bonk and WIF.
