The cryptocurrency market rose on Sunday (23 November), supported by dip-buying, rising futures activity and an increase in stablecoins flowing back to exchanges.
Bitcoin climbed to $86,000, recovering nearly 8% from its lowest point this year. Major altcoins including Zcash, Cronos, Monero and Aerodrome Finance gained more than 10% over the past 24 hours. According to CoinMarketCap, the total crypto market value grew by almost 3% to $2.9 trillion.
Dip-buying supports the rebound
Analysts say one key reason for the rise is that investors are buying the recent market dip. Many cryptocurrencies fell by double digits in previous weeks, pushing the market’s Relative Strength Index (RSI) down to an oversold level of 25.
Buying after sharp sell-offs is common in both crypto and stock markets. The positive finish in the US stock market at the end of the week also supported sentiment. The Dow Jones gained 493 points on Friday, while the S&P 500 and Nasdaq 100 also closed higher.
Still, analysts warn the current rally could be a “dead-cat bounce” or bull trap—a short-term recovery that is followed by a return to the downtrend.
Futures activity and stablecoin inflows increase
The rise also comes as activity in the crypto futures market strengthens. CoinGlass data shows that futures open interest increased by 3.3% in the last 24 hours to more than $125 billion.
At the same time, 24-hour liquidations fell sharply—down 88% to $207 million. Lower liquidations combined with higher leverage often create conditions for upward price moves, although such declines are common during weekends.
Meanwhile, Nansen data shows stablecoin balances on exchanges rose from $85 billion on Friday to $86 billion. Higher stablecoin inflows are typically seen as a sign that investors are preparing to buy crypto assets.
ETF approvals expected this week
Another factor supporting the market is the expected approval and launch of several altcoin exchange-traded funds (ETFs). Grayscale, 21Shares and Franklin Templeton are set to list their XRP ETFs this week, which have already recorded more than $400 million in cumulative inflows.
Grayscale and 21Shares will also introduce Dogecoin ETFs, adding to expectations of fresh institutional demand.
