A crypto rally is happening this week, with top tokens like XRP, Dogecoin, Cardano, and Pepe going up by over 10% in the last seven days. XRP price rose for three consecutive days, reaching a high of $1.3433, its highest level since May 30th and by 31% above its lowest level this month.
Dogecoin (DOGE) rose to $0.083, up by 20% from the year-to-date low. Cardano (ADA) and Pepe (PEPE) tokens have soared by over 25% from the lowest levels this year. In total, the market capitalization of all tokens jumped by 6.45% in the last 24 hours to $2.52 billion.
Crypto rally triggered by risk-on sentiment
One reason why the crypto rally is happening today is that investors have embraced a risk-on sentiment in the market.
The Crypto Fear and Greed Index has jumped to the greed zone of 68 from the year-to-date low of less than 15. This is an important gauge that examines metrics such as volatility, price momentum, derivatives market activity, and key proprietary data.
In most cases, Bitcoin and most altcoins do well when there is a sense of greed in the market and then reverse when it moves to the extreme zone. Crypto bull runs normally starts when the index has moved to the extreme fear zone.
The risk-on sentiment is evident in ongoing trends in the ETF market. For example, data shows that spot Bitcoin ETFs have added over $1.5 billion this month. Similarly, XRP ETFs have added $21.4 million in inflows this week, while Solana have added $18.2 million in the same period.
The risk-on sentiment also happened after the US public debt jumped to $40 trillion for the first time ever. This surge has pushed Bitcoin to $75,000 for the first time in months. Bitcoin is often seen as a hedge against the US debt surge because of its 21 million supply cap.
Trump-crypto meeting
Bitcoin and other top altcoins are rising this week because of the recent meeting between President Donald Trump and top crypto executives like those from Coinbase, Robinhood, and Ripple Labs.
One thing that was discussed in this meeting was on the CLARITY Act, which has stalled in the Senate. Trump has pledged to push for the bill to pass in the Senate and become law. After that, odds that the bill will become law rose to 29% on Polymarket. It dropped to a low of 15% earlier this year.
Still, there are potential risks that the bill may not pass. For one, this term is about to end, with many senators now focusing on the election. Also, Democrats have insisted that the bill must address some ethical issues, including those related to barring Trump from launching tokens.
Breakout after months of consolidation
Bitcoin and other top altcoins like XRP, Cardano, Dogecoin, and Pepe are going up this week is that they just made a breakout after going through substantial consolidation in the past few months. BTC remained between $57,800 and $66,700 for months, forming an inverted head-and-shoulders pattern.
XRP price remained between $0.9896 and $1.1717, while Cardano stayed between $0.1380 and $0.2067. Dogecoin also remained between $0.067 and $0.083 in the past few weeks. In most cases, assets tend to have bullish or bearish breakouts after spending substantial amounts of time inside a consolidation.
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