The market dominance of Ethereum should not be forgotten as the market-wide recovery affects SHIB and XRP, which are rallying forward and might see a bullish rally continuation starting from Sept. 10. Despite our previous gloomy market review, the overall state of the industry is becoming healthier.

Don’t forget Ethereum

At a time when many altcoins are still having difficulties, Ethereum (ETH) has once again reminded the market of its dominance and resilience. The fact that ETH, the second-largest cryptocurrency by market capitalization, has recovered well from recent declines and is currently trading at about $4,372 shows that it still has the strength to influence overall market trends.

Following its ascent above the crucial $4,000 support zone, ETH steadied itself within a narrow range without ever displaying signs of weakness. By acting as a dependable floor and deterring bears, the 50-day EMA at $4,168 has offered a solid technical foundation for a recovery. Now that ETH is maintaining a strong hold above this level, traders are paying closer attention to a potential trend reversal that might push the token back toward the $4,600-$4,800 resistance zone.

Ethereum’s ability to hold its ground while Bitcoin consolidates is what makes this most recent move noteworthy. With ETH potentially leading the next bullish wave instead of just following BTC, this decoupling suggests a change in the market’s structure. This view is supported by the RSI, which is currently at 52, indicating that Ethereum has recovered from overbought conditions while still having a lot of room to rise.

Volume has stabilized, indicating steady participation without speculative blow-offs, despite not being as explosive as it was during the rally in July. This stability is crucial because Ethereum has the technical basis to stage another leg higher if inflows of new capital resume.

Ethereum’s recent performance is a reminder of its dominance on the cryptocurrency market. It is evident that the asset is far from depleted when it maintains above $4,000 and defends its moving averages. ETH may be the first significant altcoin to signal a significant market-wide reversal if the current momentum continues, reaffirming its position as the leader in price action and innovation in the digital asset space.

XRP takes its shot

XRP is pushing above $3.00 after recovering from the $2.77 support zone, indicating that it is once again showing signs of strength. This move appears promising at first glance, particularly given that the asset has tested and remained above important short-term moving averages.

However, given the state of the market, investors should exercise caution because what appears to be the beginning of a breakout could still be a dead cat bounce. From July highs around $3.80, the chart shows a distinct descending resistance line, which XRP is currently reapproaching. A stronger bullish case would be confirmed by breaking through, but history demonstrates that such levels frequently serve as a trap for eager buyers.

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A quick retracement and another rejection could result from failing to maintain momentum at this point. The 50-day EMA at $3.07 is a potential immediate resistance level that heightens the caution. It is probable that sellers will reenter the market if XRP does not close significantly above it. A break below the 200-day EMA at $2.53 would turn the structure bearish once more, with the 100-day EMA at $2.78 serving as crucial support.

Momentum indicators lend credence to this cautious perspective. The RSI is at 55, slowly rising but not yet displaying a strong sense of bullishness. The current rally may not have the depth required for a long-lasting trend reversal, as evidenced by the muted volume, in contrast to the explosive rallies earlier this summer.

Even though XRP’s rise above $3.00 is positive, it is still much too soon to rejoice. Before announcing a win, traders should prepare for the possibility of rejection and revocation. The current move runs the risk of being little more than a brief bounce unless XRP can break its descending trendline with significant volume.

Shiba Inu speeds up

Following its breakout from a consolidation pattern, Shiba Inu’s rally is evidently picking up speed. After soaring past the $0.00001287-$0.00001297 resistance cluster created by the short-term moving averages, the token is now trading close to $0.00001307. Bulls now feel more confident, and the technical setup of SHIB has received more attention as a result of this breakout. SHIB appears well-positioned for future gains at its current levels. 

The next significant test is the 200-day EMA at $0.00001386; a strong breakout above it might push the rally further toward the $0.00001500-$0.00001600 region, which was last observed in mid-August. Momentum indicators lend credence to this optimistic outlook: the RSI has increased to 55, indicating increasing buying interest without yet displaying overbought conditions. Additionally, the volume has increased, confirming that this rally has real momentum.

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The longer-term structure has not changed much despite the short-term outlook appearing solid. SHIB is still trading well below the $0.00002000 levels, which marked the end of the summer rally, and the asset is still threatened by the larger downtrend that started following the 2021 highs. Though encouraging, the current breakout does not yet signify a significant change in Shiba Inu’s macro outlook.

The 200 EMA, which frequently serves as a major barrier, is another area where investors should be wary of possible volatility. If Shiba Inu does not make a strong push, there may be a retracement back toward the support level of $0.00001280. There is a strong technical setup for short-term traders to keep an eye on, and Shiba Inu’s bullish rally is accelerating at the current levels.

The current state of the market expresses some hope for bulls as multiple assets are showing signs of accumulation and might provide us with grounds for recovery sooner than anticipated. Risks of a bearish reversal are still there, though.

Julien Bittel, head of macro research at Global Macro Investor, argued that the bull run remains in its early stages based on comprehensive economic indicators.

In a Sept. 8 analysis shared via X, Bittel counters widespread “peak cycle” sentiment in crypto markets, challenging late-cycle narratives by examining traditional economic markers.

Peak sentiment

Classic late-cycle economies typically feature extreme manufacturing sentiment with ISM readings around 60, elevated services sentiment, high homebuilder confidence, strong consumer and worker confidence, bullish investor sentiment, and accelerating wage growth.

Bittel said current data paints a different picture. When scoring inputs from ISM, NAHB, NFIB, BLS, AAII, and The Conference Board into a composite sentiment measure, US economic sentiment remains “very subdued” and far from euphoric late-cycle extremes.

He stated:

“This does not look like an above-trend late-cycle economy. It looks much more like an early-cycle economy trying to build momentum.”

Central bank policy provides additional support for this thesis. Nearly 90% of central banks globally are cutting rates, creating what Bittel describes as “extraordinary” conditions and “a massive tailwind for the business cycle” on a forward-looking basis.

Oil prices reinforce the early-cycle argument, trading nearly 20% below trend and continuing to fall. This represents easing financial conditions rather than the tightening typically associated with late-cycle dynamics.

Historically, oil prices running 50% above trend have signaled recession since the early 1970s.

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Bull cycle in early stages

Temporary Help Services data shows “early-cycle vibes” with rising growth from profoundly negative levels, indicating economic recovery rather than rollover.

According to Bittel, late-cycle periods typically feature positive year-on-year growth that’s slowing, reflecting an overheated economy losing steam.

He attributes rising unemployment to the lagging nature of jobs data, calling it “a six-month look in the rear-view mirror.”

Businesses first increase overtime hours and temporary workers before committing to expensive full-time hires with benefits and pensions.

Bittel also frames current conditions as “early-cycle” transitioning to “mid-cycle,” describing the progression as “Macro Spring” (growth up, inflation down), moving toward “Macro Summer” (growth up, inflation up).

He concluded that this macro perspective challenges the prevailing crypto market sentiment, which suggests that the bull cycle has peaked. Instead, he assessed that the current economic conditions support continued expansion rather than contraction.

Mentioned in this article

AIverse is opening its iNFT marketplace on testnet, with One Gravity holders getting the first look. Built on 0G’s decentralized AI protocol, the platform lets users mint, trade, and explore intelligent NFTs that are central to the growing AI agent economy.

Key Takeaways

• AIverse testnet goes live on September 4, 2025, on 0G’s Galileo testnet.

• One Gravity NFT holders (1,888 total) are the first to access and mint iNFTs.

• iNFTs minted on testnet will be tradable and exchangeable for mainnet equivalents at launch.

• A snapshot taken on September 1 determines eligible wallets for early access.

• The launch marks a major step for 0G’s decentralized AI ecosystem ahead of its mainnet.

AIverse: The “OpenSea for iNFTs”

Dubbed “The OpenSea for iNFTs,” AIverse is designed as the go-to marketplace for tokenized intelligence. The platform enables minting, trading, and collecting of iNFTs, setting the stage for what 0G calls the “agent economy.”

The marketplace is powered by 0G, a modular and infinitely scalable Layer 1 blockchain built for decentralized AI. Its integration of compute, storage, and data availability makes it an ideal foundation for applications that merge Web3 and AI.

Source: 0G

Exclusive Access for One Gravity Holders

One Gravity, which launched in March, is more than just another NFT collection—it’s the gateway to 0G’s broader decentralized AI ecosystem. Its 1,888 holders now get a front-row seat to AIverse, with their NFTs serving as access passes to mint some of the very first iNFTs on the Galileo testnet.

All iNFTs will be tradable within AIverse using testnet tokens that carry no monetary value. This provision allows participants to explore the marketplace’s core features, experiment with intelligent NFTs, and position themselves for potential rewards and ecosystem incentives once 0G’s mainnet officially goes live.

First-Mover Advantage in the iNFT Economy

The first iNFT minted on AIverse during the testnet phase will also be exchangeable for a mainnet version once 0G officially launches. This provides One Gravity holders with a strong first-mover advantage in shaping the AI-driven agent economy.

Michael Heinrich, CEO of 0G Labs, said:

“AIverse is going to power 0G’s agent economy and it’s only right that the One Gravity community should be first in line to onboard, mint an exclusive iNFT and reap the rewards that come from being early.”

Why This Matters for Web3 and AI

The launch of AIverse highlights a growing trend where AI and blockchain merge to create new forms of digital ownership. Unlike static NFTs, iNFTs embody dynamic, intelligent agents that can evolve, interact, and generate value within decentralized systems.

Minting and trading iNFTs gives users a way to engage directly with AI onchain, moving beyond static digital collectibles. Communities can test how intelligent NFTs function in practice and explore their potential role in emerging markets.

For 0G, the launch of AIverse is a practical step toward its broader goal of running AI workloads in a decentralized way, rather than leaving control in the hands of centralized providers.

At the risk of being labeled the boy that cried wolf, there are early signs of a crack in the back of the NASDAQ 100 Index’s rally. These include a violation of the Lower Warning Line (dashed red line, LWL) of the Standard Pitchfork (red P1 through P3) after failing to hold the retaken ground above the Lower Parallel (sold red line). I know I’ve been beating a dead horse for weeks, but there continues to be a repeated non-confirmation of the higher price highs in the Momentum / Breadth Oscillator (dashed yellow lines). Not only does it reflect deterioration in upside momentum, but it also speaks to decaying breadth. There are early signs of a break of the trend in relative outperformance versus the SPX as witnessed by a drop below its longer-term moving average (blue line) for the first time in months (a drop of the shorter-term moving average, red line through the longer, would confirm the breakdown). There has been a sharp turn lower in the Stochastic Momentum Index (bottom panel) that at the very least suggests a potential deeper price retracement than we have seen in months. There is no question that I am sticking my neck out with this warning considering that over the next three days there could be news driven volatility in the rates market that will likely overflow into the equity markets. Key support is at the Kijun Plot (green line at 23,320) and second at Cloud support.

Good Morning, Asia. Here’s what’s making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas.

As Hong Kong begins its trading day, ETH is changing hands above $4600, down 3% on-day.

As ETH is up nearly 16% in the last week, and 45% in the last month, this probably isn’t a concern for most traders. After all, the ETH/BTC ratio has broken above its 365-day moving average, a signal that has historically marked extended periods of ETH outperformance, and spot ETF flows are reinforcing the move.

However, the same data shows early warning signs of near-term cooling, as CryptoQuant argued in a recent report.

Daily ETH inflows to exchanges have surpassed Bitcoin’s, suggesting some holders are positioning to take profits. ETH’s MVRV ratio against BTC has risen from 0.4 in May to 0.8, approaching historical overvaluation territory. CryptoQuant warns that in past cycles, such levels have preceded pauses or pullbacks in ETH’s relative strength.

Trading desks echo this view.

In a recent note, France-based FlowDesk reports that while there were $1 billion in single-day ETH ETF inflows on Monday, with broad client buying versus BTC and SOL, there were also increased call overwriting in ETH options at the $7K–$8K strikes for December — a sign some are capping upside expectations.

QCP framed ETH’s rally within a macro backdrop of softer headline CPI in its daily Asia Color telegram update, with strong expectations for a September Fed cut, and geopolitical easing, but flags upcoming Jackson Hole remarks and remaining CPI/NFP prints as potential sentiment pivots.

Market maker Enflux added in comments to CoinDesk that a hotter-than-expected PPI print reminded traders that inflation risks remain uneven, and that ETH’s outsized performance could invite consolidation.

While the structural drivers remain intact, ETF demand, institutional participation, and favorable on-chain signals, the market is entering a phase where stretched positioning and macro event risk could test ETH’s momentum. As CryptoQuant’s data shows, the rally is strong, but so are the early signs of profit-taking.

Market Movers

BTC: Bitcoin fell over 3% from record highs after hotter U.S. inflation dampened rate cut hopes and the Treasury signaled it will not expand Bitcoin purchases for its strategic reserve.

ETH: ETH is down 3.3% as sell pressure increases, as traders take profit after a record rally.

Gold: Gold fell 0.62% to $3,336.6 as hotter U.S. inflation and strong jobs data boosted the dollar and yields, trimming expectations for a large September Fed rate cut.

Nikkei 225: The Nikkei 225 opened higher as Japan’s economy grew an annualized 1.0% in Q2, beating forecasts on strong exports and capital spending, though analysts warn U.S. tariffs could slow growth in the coming months.

S&P 500: U.S. stocks stalled Thursday as a hotter-than-expected PPI dampened hopes for a large September rate cut. Goldman Sachs warns its models show elevated odds of an S&P 500 drop, citing low volatility and growing tariff risks.

Elsewhere in Crypto:

• U.S. Blacklists Crypto Network Behind Ruble-Backed Stablecoin and Shuttered Exchange Garantex (CoinDesk)
• Strategy Pushed ‘Deceptive’ Comparison to Apple and NVIDIA, Wall Street Veteran Says (Decrypt)
• Crypto Casino CEO Charged After Allegedly Gambling Away Investors’ Millions (Decrypt)

With our latest Kraken trading space, Dentoshi Unleashed one of the most valuable edges in trading: find outperformers in front of other markets.

With Crypto Markets coming to the market during the chop period, revenue seasons intensifying and wider macro catalysts playing, Dentoshi shared timely insights on how to identify early winners before starting flight.

This is an important takeaway from our conversation.

Select winners in fast moving markets lol @dentoshi https://t.co/zbfq8q09vn -kraken (@krakenfx) July 31, 2025

Why early outperformance is important

Out-performance isn’t just about being on “Hot Coins” once the party is in full swing. According to Dentoshi, the edge of true trading comes from finding signs of strength earlier when the wider market is still uncertain or sideways.

“The coins that move the earliest things often carry that momentum to the next rally.

Even at times of chops and integration, early signs of strength help position traders on high conviction opportunities.

Crypto asset management giant VanEck says that one altcoin project is flashing major signs of institutional adoption.

In a new report, VanEck highlights the growth of the Hedera (HBAR) ecosystem, which the firm notes in July, saw a price increase of over 70% due to a “wave of partnerships, network growth, and broadening institutional legitimization.”

VanEck named several examples of notable adoption of the Hedera network in July, including the Reserve Bank of Australia’s Project Acacia, which aims to explore the development of Australian wholesale tokenized asset markets.

Archax, the first regulated global digital asset exchange in the UK, also announced it would begin using the Hedera network for settlement purposes, VanEck notes.

“Institutional tokenization activity is also emerging. In late July, Archax created Hedera token contracts named after BlackRock, Fidelity ILF, State Street, Aberdeen Investments, and LGIM. Archax’s CEO confirmed these represent money market funds that could soon transact in HBAR, signaling early but still prelaunch interest in real-world asset tokenization on the network.”

And according to VanEck, stablecoin supply has exploded on Hedera. DefiLlama data shows that Hedera’s stablecoins are almost entirely driven by Circle’s USDC.

“Hedera’s on-chain activity was strong as Hedera’s transactions surged as did the supply of stablecoins on its blockchain.”

At time of writing, HBAR is trading at $0.24 with a market cap of $10.3 billion.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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