Santa Claus rally happened in the crypto industry as some big altcoins experienced double-digit gains.
Pudgy Penguins (PENGU), the recently airdropped token, soared by 40% on Dec. 24, bringing its market cap to $2.26 billion. This rally happened after data showed that its NFT sales jumped by 40% in the last 24 hours to $1.38 million. It also rallied after a major whale continued accumulating more PENGU tokens.
JasmyCoin (JASMY), popularly known as Japan’s Bitcoin, rose for the third consecutive day, and reached its highest level since December 8. This rebound happened even after a big whale moved Jasmy tokens worth over $1.4 million to Coinbase. Crypto holders move coins to an exchange as a first approach towards liquidation.
On the positive side, data shows that more investors are moving their tokens from exchanges. JASMY tokens on exchanges dropped by 1.97% on Dec. 24 to 16.74 billion. Exchanges had over 17 billion JASMY tokens a week ago.
IOTA (IOTA) was another top-performing coin on Christmas Eve as it jumped for the third consecutive day. This rally happened after the community members completed voting for the Rebased proposal.
98% of the IOTA token holders voted in favor as the upgrade will introduce more features like staking, move-based smart contracts, and fast transaction speeds. IOTA hopes to become a major player in the blockchain industry, where it will compete with the likes of Ethereum and Solana.
Algorand (ALGO), Hedera Hashgraph, Virtuals Protocol, and Curve DAO Token were the other top-performing cryptocurrencies.
These tokens rose as Bitcoin held steady and moved above the resistance level at $97,000. Historically, most altcoins do well when Bitcoin is rising. The rally is also happening because of the concept of a Santa Claus rally, where assets rise a few days before Christmas. This rally also happened in the stocks industry as the Dow Jones, Nasdaq 100, and S&P 500 jumped.
Still, there is a risk that the ongoing rebound could be a dead cat bounce. A DCB, also known as a bull trap, is a temporary surge that happens when an asset is in a strong downtrend. Therefore, the uptrend of Bitcoin and most altcoins will mostly be confirmed when they rise above their December highs.
