Crypto Market Bearish Trend Persists With 35 RSI

The current funding rates displayed by mainstream centralized exchanges (CEX) and decentralized exchanges (DEX) indicate that the cryptocurrency market is still in a bearish trend. This trend is supported by various technical indicators and market analyses, which suggest that the overall sentiment remains cautious. The Relative Strength Index (RSI) stands at 35, indicating bearish pressure, while the Moving Average Convergence Divergence (MACD) suggests that certain cryptocurrencies, such as Cardano, may enter a buying zone if they continue to decline. This bearish trend is not limited to specific cryptocurrencies but affects the broader market, including major coins like Bitcoin and Ethereum. The decline in derivatives volume for cryptocurrencies like XRP further supports the bearish outlook, as it indicates reduced trading activity and interest. The market cap of the crypto market has settled at $3.26 trillion, reflecting the overall bearish sentiment.

Analysts have identified several technical signs that point to a continued bearish trend, including declining volume and resistance levels. The market's bearish trend is also influenced by external factors, such as global tensions and regulatory uncertainties, which add to the overall cautious sentiment. Despite some cryptocurrencies, like Litecoin, showing signs of bucking the trend due to factors like ETF hopes, the broader market remains under bearish pressure. The current market structure, with most tokens following the overall bearish trend, suggests that the market is likely to remain in this state until significant positive catalysts emerge.

Funding Rate is a fee set by cryptocurrency exchanges to keep the contract price balanced with the underlying asset price, usually applicable to perpetual contracts. It is a mechanism for fund exchange between long and short traders, and the trading platform does not charge this fee. It is used to adjust the cost or profit of traders holding contracts to keep the contract price close to the underlying asset price. When the funding rate is 0.01%, it represents the baseline rate. When the funding rate is greater than 0.01%, it indicates a generally bullish market. When the funding rate is less than 0.005%, it indicates a generally bearish market.