Global Crypto Market Consolidates as Trading Patterns Diverge
- The RSI decreased to 34.6, indicating oversold risk conditions and waning momentum.
- With an improvement to -124.2 million, spot CVD showed less pressure from net sales.
- Spot trading volume rose to $7.2B, reflecting liquidity and market engagement.
The cryptocurrency market is entering a period of transition, according to a Glassnode report shared by analyst AltCryptoGems on X. The study shows that derivative activity is weakening, while spot trading and liquidity continue to demonstrate resilience. Analysts described the development as “consolidation over panic,” with investor participation shifting gears rather than disappearing.
Momentum indicators reveal fading strength. The relative strength index (RSI) fell from 60.7 to 34.6, breaking below the statistical low band of 41.1. Such conditions indicate oversold risk, often seen before stabilization or short-term reversals. Selling pressure, however, remains in control, reflecting ongoing caution among participants.
Spot market performance presented a different picture. The spot cumulative volume delta (CVD) improved from– $137.3 million to– $124.2 million, indicating a decrease in net selling pressure. Although still inside statistical ranges, the shift suggested moderation from sellers and a tentative improvement in short-term sentiment.
Spot Liquidity Steady Amid Derivatives Cooling
Spot trading volumes rose notably. Data shows an increase from $5.9 billion to $7.2 billion, signaling stronger participation and healthier liquidity. These figures remained within normal ranges, indicating stable but not extreme trading activity. Recent price moves were supported by this engagement, underscoring sustained investor interest despite weakening derivatives.
Glassnode reported that Bitcoin traded above the short-term holder cost basis last week, with price movements fluctuating around $111,000. Spot momentum softened as the 14-day RSI eased and selling pressure declined, reinforcing the stabilization visible in CVD readings.
Derivatives metrics sent a cautious message. Futures open interest and funding declined, showing reduced leverage and falling appetite for risk. Positioning turned defensive, with fewer signs of aggressive long exposure. In contrast, options markets saw stronger activity, with traders shifting demand toward downside protection.
Volatility spreads thus remained high, reflecting expectations of deep swings. However, traders showed no directional inclination whatsoever. Balance was maintained in liquidity conditions across markets, thereby adding to the steadiness. Yet the protective tilt only placed Paranoia atop sentiments beneath stable surfaces.
On-Chain Activity and Broader Market Outlook
Glassnode observed dissolution in blockchain fundamentals. New addresses decreased, transaction activity slowed, and the velocity of tokens decreased on these indicators. All these were signs of a market pause mode, as opposed to being in a state of strong internal momentum.
The report indicated that an external demand might trigger the next decisive move. These triggers could be changes in macroeconomic policy, developments on the regulatory side, or fresh institutional inflows. The divergence witnessed between steady spot activity and the decline in derivatives appetite, therefore, points toward a reduction in leverage and fragility with the ongoing presence of underlying core market activity.
AltCryptoGems explained that the broader structure presently reflects a state of consolidation. The impulse waned, and traders began to pull away from their leveraged bets. Still, the liquidity in spot markets holds, preventing the spread of fear for a collapse. Thus, the analyst defined the market posture as ‘waiting’ as opposed to ‘retreating.’
Related: Crypto vs Banks: Fight Over Stablecoin Rewards Heats Up
The issue remains: will a macro or regulatory catalyst provide some spark for the next phase? Markets after periods of excess tend to recalibrate, reduce leverage, consolidate, and then push upward once again. Presently, we are witnessing such mid-cycle behaviour: conviction still exists, but momentum has waned.
According to figures from Coingecko, the global cryptocurrency market cap stood at $3.99 trillion, up 1.03% within 24 hours and 70.67% year-over-year. Bitcoin dominates, exercising a market cap of $2.27 trillion and representing 56.73% of the total market value. Stablecoins continue to support liquidity, with a market cap of $301 billion and a 7.53% market share.
