A crypto market rally is happening today, September 19, with Bitcoin and top altcoins like Ethena (ENA), Injective (INJ), and VeChain (VET) rising by double digits. The market capitalization of all coins jumped by 4% in the last 24 hours to $2.78 trillion. This article explores some of the top reasons behind the cryptocurrency market rally.
Crypto market rally is happening as Bitcoin crosses $81k
One of the main reasons behind the ongoing crypto market rally is that Bitcoin has staged a strong comeback and moved above the key resistance level of $80,000. This rally is mostly because of its role as a safe-haven asset amid the ongoing US public debt surge. The debt jumped to $40 trillion and is continuing its uptrend.
Bitcoin has unique characteristics that make it a safe-haven asset, including its supply cap of 21 million coins and the fact that it has never experienced a hack in the last 17 years of its inception. Some investors see it as the digital version of gold.
Further, there are signs that investors have embraced a risk-on sentiment in the market, with the Crypto Fear and Greed Index remaining in the greed zone of 73. It has remained above this level in the past month, the longest streak this year. In most cases, investors tend to pile into digital coins whenever a sense of greed is in the market.
Bitcoin and altcoins are also surging as demand among investors rise. The 24-hour volume rose by 17.8% in the last 24 hours to over $104.9 billion.
Technicals also explain why these tokens are doing well. Bitcoin has formed a bullish flag and a golden cross pattern. In most cases, these patterns normally leads to more gains over time. Other tokens like ETH, XRP, and Solana have also done that pattern.
Ethena, Injective, and Solana rising amid strong technicals
While top tokens like Ethena, Injective, and Solana have strong fundamentals, there are signs that the ongoing rebound is driven by their technicals.
ENA token chart | Source: TradingView
As the above chart shows, ENA token soared to the crucial resistance level of $0.1908 in August and then retreated to $0.1350. Since then, it has staged a strong comeback and moved above the key resistance level of $0.1908, confirming the bullish breakout.
The coin remains above all moving averages, while momentum indicators are rising. Therefore, the path of the least resistance for the token is bullish, with the next key target being the psychological level of $0.2500.
INJ price chart | Source: TradingView
Injective token jumped after 21Shares filed for a spot INJ ETF and as the community members voted to intensify its role in the financial industry. Technicals also explain why it is soaring today. It formed a cup-and-handle pattern, a common continuation sign in technical analysis.
It has also moved above the upper side of this cup, and remained above all moving averages. The most likely scenario is where it retests the upper side of the cup at $7.3167. These technicals suggest that it has more upside to go once the retest happens.
VET price chart | Source: TradingView
VET price has been in a strong rally in the past few months. It has remained above the 50-day moving average, which has provided it with robust support. Also, it has jumped above the key resistance level of $0.0083, its highest point on September 10. The token will likely continue rising as bulls target the psychological level of $0.01.
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