PONKE (ponke) 
Altcoins such as Stacks, Floki, Bonk, and Solana have continued their recent rebound as traders took advantage of the dip and the crypto fear and greed index moved to a neutral point.
Floki, Stacks, Bonk, and Other Tokens on the Rise
The Floki token rose to $0.0001370 on Wednesday, August 7, marking a 42% increase from its lowest point this week. Similarly, Solana (SOL) jumped to $154, a 41% rise from its weekly low of $110. Stacks also saw gains, climbing to $1.4420. Other top gainers included altcoins like Popcat (POPCAT), Dogwifhat (WIF), and Bonk, which was up by 7%.
This surge occurred as the recent fear among stock and crypto investors eased. The crypto fear and greed index rose to a neutral point of 43 from this week’s low of 38. Meanwhile, the VIX index, known as Wall Street’s fear gauge, also retreated.
Consequently, 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’s Influence and Technical Risks
The prices of Floki, Stacks, and Bonk also rose due to Bitcoin’s resilience, as it climbed to over $57,000. Bitcoin formed a hammer candlestick pattern and a falling broadening wedge, suggesting potential further gains.
However, the biggest technical risk for Bitcoin is the imminent formation of a death cross, where the 200-day and 50-day simple moving averages cross each other. This often signals a downward trend.
The last time Bitcoin experienced a golden cross – the opposite of a death cross – was in October last year, leading to a rise of over 110%. In contrast, a death cross in January 2022 saw Bitcoin drop from $48,000 to $15,700.
Other altcoins are also nearing the formation of a death cross if the current recovery doesn’t hold steady. For instance, Solana is trading at its 50-day and 200-day moving averages, while Floki is approaching the same point.
Potential Catalysts for Continued Growth
If these coins retreat, it might indicate that the ongoing rebound is a brief dead cat bounce, a common occurrence when cryptocurrencies are falling.
However, there are potential catalysts for Bonk, Floki, and Stacks. Broadly, these tokens could benefit from potential monetary policy easing, which the market has already priced in. Analysts from Citi, JPMorgan, and Wells Fargo expect the Federal Reserve to cut rates by 0.50% in September. Jefferies even predicts an emergency meeting and a rate cut this month.
Another likely catalyst is the possibility of more companies applying for a spot Solana ETF. VanEck has already applied, and Franklin Templeton has hinted at a potential application. A Solana ETF could lead to more upside for tokens like Bonk and WIF.
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