What happened

Volatility in the cryptocurrency market continues to make headline news. However, today's price action has broadly taken a bullish turn this afternoon, with many top tokens moving from the red into the green in afternoon trading.

As of 2:45 p.m. ET, Ethereum (ETH 3.97%)Dogecoin (DOGE 5.03%), and The Sandbox (SAND 4.97%) surged 2.2%, 1.1%, and 3.5%, respectively, over the past 24 hours.

People holding up an upward red arrow.

Image source: Getty Images.

This move higher appears to be the result of positive sentiment building around what could be a more constructive environment for crypto. Each of these top tokens has its own catalysts that bulls are relying on to make a buying decision, despite the selling pressure we've seen of late.

Recent news that Ethereum and other top cryptocurrencies could be graded as commodities by the Commodity Futures Trading Commission has some investors bullish on Ethereum, relative to other tokens. This megacap token continues to hold much steadier than smaller counterparts, largely due to the view that Ethereum is an asset class in and of itself.

Dogecoin has benefited greatly from the Elon Musk saga with Twitter of late. With the self-proclaimed "Dogefather" set to take the helm (though he's now fighting this acquisition), there's something for Dogecoin investors to look forward to. Uncertainty remains around whether the deal will get done, but more discussion around Dogecoin is generally something its bulls view positively.

The Sandbox has seen a number of high-profile brands join its metaverse, with interest seeming to surge in this sector. Should this bullish momentum in the metaverse continue, bulls have reason to like how this token is positioned.

So what

Generally speaking, taking a quick look at what equity markets are doing on a given day is a pretty good predictor of where crypto prices are headed. There's been historically high correlation between cryptocurrencies and riskier equities such as tech stocks this year. However, the choppiness of the stock market and the volatility we're seeing in the crypto market today have somewhat diverged.

Much of that appears to be due to the view that there are fundamental reasons to consider various top cryptocurrencies at these levels. Whether it's Ethereum's stability or the speculative upside that Dogecoin and The Sandbox provide, these lower token prices could represent intriguing entry points for aggressive investors looking to add risk.

Now what

The real question from here is just how aggressive investors will be. The decision to add risk at a time when there's little support for risk assets can be a daunting one. Accordingly, perhaps this is just another bear market bounce on a longer-term trend downward.

Time will tell. Today, investor sentiment appears to be improving. Tomorrow, we'll see how the market reassesses this rally.