Kraken flags critical days ahead for crypto as volatility threat looms
Kraken has warned that early January price action across major cryptocurrencies could mark either a false start or the beginning of a more tradable phase, following a Trading Spaces session led by its vice-president of growth, Matt Howells-Barby, and professional trader Dentoshi.
The discussion focused on whether subdued market moves at the start of the year are setting the stage for a decisive break, after weeks of tight ranges and muted volatility. Dentoshi said bitcoin now has a fresh yearly open that traders can use as a benchmark, but remains range-bound after an extended period of compression.
Direction, rather than speed, would be decisive when the market eventually moves, Dentoshi said, adding that volatility is likely to return. “We’ve been sitting here for so long. When the move comes, whether it’s up or down, it’s one you should actually believe,” he said.
Attention also turned to ether, which Dentoshi said is breaking back above key exponential moving averages and may be turning them into support. That relative strength versus bitcoin could prove constructive for the wider market. “ETH is already performing what we want to see on BTC. That gives it more strength – and that’s a good sign for alts as well,” he said.
Kraken said several altcoin charts are showing improving technical structures, with names such as PEPE, ENA, PENGU, Dogecoin, MONAD and XRP-linked plays reclaiming long-held downtrends. Zcash was cited as an exception, having weakened at critical levels.
The speakers described the next few days as pivotal, urging traders to watch for confirmed EMA reclaims across timeframes, assets retracing to logical lows, upcoming token unlocks, and confirmation from bitcoin and ether before assuming any sustained continuation.
The Recap
- Kraken Trading Spaces reviewed fresh market volatility and chart setups.
- Ether is breaking above key EMAs and showing relative strength.
- Speakers said the next few days will be critical.
