The crypto market has been showing signs of recovery after a turbulent September, with Bitcoin (BTC) hovering around the $28,000 level and some altcoins outperforming the leading cryptocurrency. Bitcoin has gained about 3% in the past week, recovering from a dip below $26,000 on Monday.
The largest crypto by market cap is facing resistance at the $28,000 level, which it failed to break earlier this week. Analysts are watching for a decisive move above this level to confirm a bullish trend reversal. BTC is currently trading at $27,715.94.
Altcoins Have Been Outperforming Bitcoin
Meanwhile, some altcoins have been performing better than Bitcoin, especially XRP and Avalanche’s AVAX. XRP, the native token of Ripple’s payment network, has surged in the past week, reaching the $0.5375 price on Wednesday.
XRP’s rally was driven by two positive developments for Ripple. The company’s Asian arm received a license from the Monetary Authority of Singapore to offer its payment services in the region, while its U.S. entity won a legal victory against the Securities and Exchange Commission (SEC), which lost a bid to appeal in the Ripple case. XRP is trading at $0.5241.
Avalanche’s AVAX also soared in the past week, hitting $10.27 on Thursday. AVAX’s growth was fueled by the popularity of Stars Arena, a decentralized application (dApp) built on the Avalanche blockchain that allows users to buy “shares” of social media accounts and access exclusive content.
Stars Arena is similar to Friend.Tech, a viral dApp that runs on Ethereum has attracted over 600,000 transactions since Monday. The high demand for Stars Arena has increased the activity and fees on the Avalanche network, boosting the value of AVAX. Other altcoins that have performed well in the past week include Shiba Inu (SHIB), and Chainlink (LINK), which rose over 10%.
The crypto market is still facing uncertainty and volatility amid regulatory pressures and macroeconomic factors. However, some analysts are optimistic that the market will see more growth by the end of the year, especially if Bitcoin can break above $28,000 and trigger a new wave of FOMO (fear of missing out).