The cryptocurrency market is exhibiting early signs of a potential recovery following a notable downturn. Momentum indicators suggest that selling pressure is waning, with many major cryptocurrencies currently in oversold territory, as indicated by RSI values below 30. This environment could set the stage for a short squeeze rally, as growing short positions may be forced to cover. Historically, such oversold conditions have often led to periods of consolidation before any significant upward movement. Traders are closely monitoring these indicators for signs of a sustained recovery, as the market seeks to stabilize and potentially rebound from recent lows.